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“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 Align Technology Inc (NASD: ALGN)? Today, we examine the outcome of a ten year investment into the stock back in 2011.

Start date: 07/28/2011


End date: 07/27/2021
Start price/share: $22.10
End price/share: $625.51
Starting shares: 452.49
Ending shares: 452.49
Dividends reinvested/share: $0.00
Total return: 2,730.36%
Average annual return: 39.67%
Starting investment: $10,000.00
Ending investment: $283,026.05

As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 39.67%. This would have turned a $10K investment made 10 years ago into $283,026.05 today (as of 07/27/2021). On a total return basis, that’s a result of 2,730.36% (something to think about: how might ALGN shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” — Warren Buffett