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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a five year period?

Today, let’s look backwards in time to 2018, and take a look at what happened to investors who asked that very question about Autodesk Inc (NASD: ADSK), by taking a look at the investment outcome over a five year holding period.

Start date: 11/14/2018


End date: 11/13/2023
Start price/share: $129.43
End price/share: $210.10
Starting shares: 77.26
Ending shares: 77.26
Dividends reinvested/share: $0.00
Total return: 62.33%
Average annual return: 10.17%
Starting investment: $10,000.00
Ending investment: $16,229.93

The above analysis shows the five year investment result worked out quite well, with an annualized rate of return of 10.17%. This would have turned a $10K investment made 5 years ago into $16,229.93 today (as of 11/13/2023). On a total return basis, that’s a result of 62.33% (something to think about: how might ADSK shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“We ignore outlooks and forecasts… we’re lousy at it and we admit it … everyone else is lousy too, but most people won’t admit it.” — Martin Whitman