“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Salesforce.com Inc (NYSE: CRM)? Today, we examine the outcome of a ten year investment into the stock back in 2009.
| Start date: | 07/31/2009 |
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| End date: | 07/30/2019 | ||||
| Start price/share: | $10.84 | ||||
| End price/share: | $156.96 | ||||
| Starting shares: | 922.51 | ||||
| Ending shares: | 922.51 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,347.97% | ||||
| Average annual return: | 30.63% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $144,792.88 | ||||
As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 30.63%. This would have turned a $10K investment made 10 years ago into $144,792.88 today (as of 07/30/2019). On a total return basis, that’s a result of 1,347.97% (something to think about: how might CRM 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:
“Be fearful when others are greedy; be greedy when others are fearful.” — Warren Buffett
