“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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Gartner Inc (NYSE: IT)? Today, we examine the outcome of a ten year investment into the stock back in 2009.
| Start date: | 10/07/2009 |
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| End date: | 10/04/2019 | ||||
| Start price/share: | $18.49 | ||||
| End price/share: | $143.25 | ||||
| Starting shares: | 540.83 | ||||
| Ending shares: | 540.83 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 674.74% | ||||
| Average annual return: | 22.73% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $77,493.21 | ||||
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 22.73%. This would have turned a $10K investment made 10 years ago into $77,493.21 today (as of 10/04/2019). On a total return basis, that’s a result of 674.74% (something to think about: how might IT shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“You can get in much more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” — Benjamin Graham
