Every $10K Invested into Salesforce.com in 2010 is Now Worth This

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— Warren Buffett

Such a great quote from Warren Buffett, highlighting the importance of investment time horizon when considering making an investment. In the short run, who knows what the stock market will do? A week or two after buying any given stock, could the entire stock market fall out of bed? Quite possibly! Should that happen, how would you react? It is an excellent question to think about before hitting the buy button.

For investors who take a multi-year time horizon, the important thing is not what happens in the next week or two, but what the result will be over the long haul. Today, we look at the result investors of the year 2010 experienced, who considered an investment in shares of Salesforce.com Inc (NYSE: CRM) and decided upon a ten year investment time horizon.

CRM 10-Year Return Details
Start date:	03/01/2010	$10,000 03/01/2010 $97,079 02/27/2020
End date:	02/27/2020
Start price/share:	$17.73
End price/share:	$172.15
Starting shares:	564.02
Ending shares:	564.02
Dividends reinvested/share:	$0.00
Total return:	870.95%
Average annual return:	25.52%
Starting investment:	$10,000.00
Ending investment:	$97,079.90

As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 25.52%. This would have turned a $10K investment made 10 years ago into $97,079.90 today (as of 02/27/2020). On a total return basis, that’s a result of 870.95% (something to think about: how might CRM 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:
“Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make.” — Donald Trump