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“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.

Start date: 07/08/1999


End date: 07/05/2019
Start price/share: $2.53
End price/share: $209.51
Starting shares: 3,952.57
Ending shares: 3,952.57
Dividends reinvested/share: $0.00
Total return: 8,181.03%
Average annual return: 24.70%
Starting investment: $10,000.00
Ending investment: $827,664.57

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: “I don’t know.” If someone doesn’t say that to you then they are lying.” — James Altucher