Photo credit:

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— 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 twenty year period?

Today, let’s look backwards in time to 2001, and take a look at what happened to investors who asked that very question about Align Technology Inc (NASD: ALGN), by taking a look at the investment outcome over a twenty year holding period.

Start date: 03/19/2001


End date: 03/16/2021
Start price/share: $8.88
End price/share: $542.54
Starting shares: 1,126.76
Ending shares: 1,126.76
Dividends reinvested/share: $0.00
Total return: 6,013.13%
Average annual return: 22.83%
Starting investment: $10,000.00
Ending investment: $611,411.65

The above analysis shows the twenty year investment result worked out exceptionally well, with an annualized rate of return of 22.83%. This would have turned a $10K investment made 20 years ago into $611,411.65 today (as of 03/16/2021). On a total return basis, that’s a result of 6,013.13% (something to think about: how might ALGN shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“In the long run, we are all dead.” — John Maynard Keynes