Photo credit:

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 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 ten year period?

Today, let’s look backwards in time to 2010, 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 ten year holding period.

Start date: 10/15/2010


End date: 10/14/2020
Start price/share: $33.32
End price/share: $246.70
Starting shares: 300.12
Ending shares: 300.12
Dividends reinvested/share: $0.00
Total return: 640.40%
Average annual return: 22.15%
Starting investment: $10,000.00
Ending investment: $74,030.53

The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 22.15%. This would have turned a $10K investment made 10 years ago into $74,030.53 today (as of 10/14/2020). On a total return basis, that’s a result of 640.40% (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:
“Successful investing is anticipating the anticipations of others.” — John Maynard Keynes