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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

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Synopsys Inc (NASD: SNPS)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.

Start date: 07/01/2009


End date: 06/28/2019
Start price/share: $19.66
End price/share: $128.69
Starting shares: 508.65
Ending shares: 508.65
Dividends reinvested/share: $0.00
Total return: 554.58%
Average annual return: 20.68%
Starting investment: $10,000.00
Ending investment: $65,483.12

As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 20.68%. This would have turned a $10K investment made 10 years ago into $65,483.12 today (as of 06/28/2019). On a total return basis, that’s a result of 554.58% (something to think about: how might SNPS shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“Successful investing is anticipating the anticipations of others.” — John Maynard Keynes