“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Autodesk Inc (NASD: ADSK)? Today, we examine the outcome of a five year investment into the stock back in 2019.
| Start date: | 04/24/2019 |
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| End date: | 04/23/2024 | ||||
| Start price/share: | $176.31 | ||||
| End price/share: | $217.93 | ||||
| Starting shares: | 56.72 | ||||
| Ending shares: | 56.72 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 23.61% | ||||
| Average annual return: | 4.33% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,362.22 | ||||
As we can see, the five year investment result worked out as follows, with an annualized rate of return of 4.33%. This would have turned a $10K investment made 5 years ago into $12,362.22 today (as of 04/23/2024). On a total return basis, that’s a result of 23.61% (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 investment quote to leave you with:
“The older I get, the more I see a straight path where I want to go. If you’re going to hunt elephants, don’t get off the trail for a rabbit.” — T. Boone Pickens
