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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 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
$10,000

09/17/2009
$92,965

09/16/2019
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