“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Ansys Inc. (NASD: ANSS)? Today, we examine the outcome of a two-decade investment into the stock back in 1999.
|Average annual return:||24.70%|
As we can see, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 24.70%. This would have turned a $10K investment made 20 years ago into $827,664.57 today (as of 07/05/2019). On a total return basis, that’s a result of 8,181.03% (something to think about: how might ANSS shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“The most important three words in investing is: â€œI don’t know.â€ If someone doesn’t say that to you then they are lying.” — James Altucher