“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 Salesforce Inc (NYSE: CRM)? Today, we examine the outcome of a ten year investment into the stock back in 2012.
| Start date: | 07/11/2012 |
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| End date: | 07/08/2022 | ||||
| Start price/share: | $31.73 | ||||
| End price/share: | $175.50 | ||||
| Starting shares: | 315.16 | ||||
| Ending shares: | 315.16 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 453.10% | ||||
| Average annual return: | 18.66% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $55,314.61 | ||||
As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 18.66%. This would have turned a $10K investment made 10 years ago into $55,314.61 today (as of 07/08/2022). On a total return basis, that’s a result of 453.10% (something to think about: how might CRM shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Sentimentality about an investments leads to lack of discipline.” — Sam Zell
