“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 IPG Photonics Corp (NASD: IPGP)? Today, we examine the outcome of a ten year investment into the stock back in 2011.
| Start date: | 06/14/2011 |
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| End date: | 06/11/2021 | ||||
| Start price/share: | $68.65 | ||||
| End price/share: | $203.60 | ||||
| Starting shares: | 145.67 | ||||
| Ending shares: | 145.67 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 196.58% | ||||
| Average annual return: | 11.48% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $29,646.24 | ||||
The above analysis shows the ten year investment result worked out quite well, with an annualized rate of return of 11.48%. This would have turned a $10K investment made 10 years ago into $29,646.24 today (as of 06/11/2021). On a total return basis, that’s a result of 196.58% (something to think about: how might IPGP 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:
“Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make.” — Donald Trump
