“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 Cadence Design Systems Inc (NASD: CDNS)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.
| Start date: | 09/17/2009 |
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| End date: | 09/16/2019 | ||||
| Start price/share: | $7.07 | ||||
| End price/share: | $65.73 | ||||
| Starting shares: | 1,414.43 | ||||
| Ending shares: | 1,414.43 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 829.70% | ||||
| Average annual return: | 24.97% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $92,965.74 | ||||
As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 24.97%. This would have turned a $10K investment made 10 years ago into $92,965.74 today (as of 09/16/2019). On a total return basis, that’s a result of 829.70% (something to think about: how might CDNS shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Don’t look for the needle in the haystack, just buy the haystack.” — John Bogle
