“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 Align Technology Inc (NASD: ALGN)? Today, we examine the outcome of a ten year investment into the stock back in 2010.
| Start date: | 04/29/2010 |
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| End date: | 04/28/2020 | ||||
| Start price/share: | $17.93 | ||||
| End price/share: | $203.51 | ||||
| Starting shares: | 557.72 | ||||
| Ending shares: | 557.72 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,035.03% | ||||
| Average annual return: | 27.48% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $113,500.64 | ||||
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 27.48%. This would have turned a $10K investment made 10 years ago into $113,500.64 today (as of 04/28/2020). On a total return basis, that’s a result of 1,035.03% (something to think about: how might ALGN shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“A 10% decline in the market is fairly common, it happens about once a year. Investors who realize this are less likely to sell in a panic, and more likely to remain invested, benefitting from the wealthbuilding power of stocks.” — Christopher Davis
