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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

Investors can learn a lot from Warren Buffett, whose above quote teaches the importance of thinking about investment time horizon, and asking ourselves before buying any given stock: can we envision holding onto it for years — even a decade-long holding period possibly?

Suppose a “buy-and-hold” investor was considering an investment into Autodesk Inc (NASD: ADSK) back in 2014: back then, such an investor may have been pondering this very same question. Had they answered “yes” to a full decade-long investment time horizon and then actually held for these past 10 years, here’s how that investment would have turned out.

Start date: 03/11/2014


End date: 03/08/2024
Start price/share: $52.81
End price/share: $251.86
Starting shares: 189.36
Ending shares: 189.36
Dividends reinvested/share: $0.00
Total return: 376.92%
Average annual return: 16.91%
Starting investment: $10,000.00
Ending investment: $47,699.81

The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 16.91%. This would have turned a $10K investment made 10 years ago into $47,699.81 today (as of 03/08/2024). On a total return basis, that’s a result of 376.92% (something to think about: how might ADSK shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.” — Charlie Munger