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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a five year period?

Today, let’s look backwards in time to 2015, and take a look at what happened to investors who asked that very question about Autodesk Inc (NASD: ADSK), by taking a look at the investment outcome over a five year holding period.

Start date: 01/30/2015


End date: 01/29/2020
Start price/share: $54.01
End price/share: $199.74
Starting shares: 185.15
Ending shares: 185.15
Dividends reinvested/share: $0.00
Total return: 269.82%
Average annual return: 29.90%
Starting investment: $10,000.00
Ending investment: $36,986.71

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 29.90%. This would have turned a $10K investment made 5 years ago into $36,986.71 today (as of 01/29/2020). On a total return basis, that’s a result of 269.82% (something to think about: how might ADSK shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“Though tempting, trying to time the market is a loser’s game.” — Christopher Davis