“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 decade-long 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 decade-long investment into the stock back in 2011.
| Start date: | 02/04/2011 |
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| End date: | 02/03/2021 | ||||
| Start price/share: | $43.69 | ||||
| End price/share: | $292.85 | ||||
| Starting shares: | 228.89 | ||||
| Ending shares: | 228.89 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 570.29% | ||||
| Average annual return: | 20.94% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $67,011.92 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 20.94%. This would have turned a $10K investment made 10 years ago into $67,011.92 today (as of 02/03/2021). On a total return basis, that’s a result of 570.29% (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.]
Another great investment quote to think about:
“In investing, what is comfortable is rarely profitable.” — Robert Arnott
