“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: | 08/30/2019 |
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| End date: | 08/29/2024 | ||||
| Start price/share: | $142.82 | ||||
| End price/share: | $258.23 | ||||
| Starting shares: | 70.02 | ||||
| Ending shares: | 70.02 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 80.81% | ||||
| Average annual return: | 12.57% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $18,082.32 | ||||
As shown above, the five year investment result worked out quite well, with an annualized rate of return of 12.57%. This would have turned a $10K investment made 5 years ago into $18,082.32 today (as of 08/29/2024). On a total return basis, that’s a result of 80.81% (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.]
Another great investment quote to think about:
“I learned early that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again. I’ve never forgotten that.” — Jesse Livermore
