“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 2021.
| Start date: | 02/01/2021 |
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| End date: | 01/29/2026 | ||||
| Start price/share: | $286.32 | ||||
| End price/share: | $255.68 | ||||
| Starting shares: | 34.93 | ||||
| Ending shares: | 34.93 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -10.70% | ||||
| Average annual return: | -2.24% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $8,930.17 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -2.24%. This would have turned a $10K investment made 5 years ago into $8,930.17 today (as of 01/29/2026). On a total return basis, that’s a result of -10.70% (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:
“You can’t be a good value investor without being an independent thinker; you’re seeing valuations that the market is not appreciating. But it’s critical that you understand why the market isn’t seeing the value you do.” — Joel Greenblatt
