“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Adobe Inc (NASD: ADBE)? Today, we examine the outcome of a twenty year investment into the stock back in 2005.
| Start date: | 03/28/2005 |
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| End date: | 03/26/2025 | ||||
| Start price/share: | $33.56 | ||||
| End price/share: | $397.81 | ||||
| Starting shares: | 297.97 | ||||
| Ending shares: | 297.97 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,085.37% | ||||
| Average annual return: | 13.16% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $118,618.65 | ||||
As we can see, the twenty year investment result worked out quite well, with an annualized rate of return of 13.16%. This would have turned a $10K investment made 20 years ago into $118,618.65 today (as of 03/26/2025). On a total return basis, that’s a result of 1,085.37% (something to think about: how might ADBE shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby Davis
