“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 Autodesk Inc (NASD: ADSK)? Today, we examine the outcome of a ten year investment into the stock back in 2010.
| Start date: | 09/17/2010 |
|
|||
| End date: | 09/16/2020 | ||||
| Start price/share: | $32.56 | ||||
| End price/share: | $230.76 | ||||
| Starting shares: | 307.13 | ||||
| Ending shares: | 307.13 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 608.72% | ||||
| Average annual return: | 21.62% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $70,878.70 | ||||
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 21.62%. This would have turned a $10K investment made 10 years ago into $70,878.70 today (as of 09/16/2020). On a total return basis, that’s a result of 608.72% (something to think about: how might ADSK shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.” — Peter Lynch
