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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 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


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