“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
