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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a ten year holding period for an investor who was considering IPG Photonics Corp (NASD: IPGP) back in 2009, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 05/28/2009
$10,000

05/28/2009
$129,825

05/24/2019
End date: 05/24/2019
Start price/share: $10.09
End price/share: $131.01
Starting shares: 991.08
Ending shares: 991.08
Dividends reinvested/share: $0.00
Total return: 1,198.41%
Average annual return: 29.24%
Starting investment: $10,000.00
Ending investment: $129,825.23

As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 29.24%. This would have turned a $10K investment made 10 years ago into $129,825.23 today (as of 05/24/2019). On a total return basis, that’s a result of 1,198.41% (something to think about: how might IPGP shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“Never is there a better time to buy a stock than when a basically sound company, for whatever reason, temporarily falls out of favor with the investment community.” — Geraldine Weiss