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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 Adobe Inc (NASD: ADBE)? Today, we examine the outcome of a ten year investment into the stock back in 2012.

Start date: 12/17/2012


End date: 12/15/2022
Start price/share: $37.42
End price/share: $328.71
Starting shares: 267.24
Ending shares: 267.24
Dividends reinvested/share: $0.00
Total return: 778.43%
Average annual return: 24.27%
Starting investment: $10,000.00
Ending investment: $87,834.07

As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 24.27%. This would have turned a $10K investment made 10 years ago into $87,834.07 today (as of 12/15/2022). On a total return basis, that’s a result of 778.43% (something to think about: how might ADBE 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:
“Sometimes buying early on the way down looks like being wrong, but it isn’t.” — Seth Klarman