“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 Nektar Therapeutics (NASD: NKTR)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 04/12/1999 |
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| End date: | 04/10/2019 | ||||
| Start price/share: | $28.38 | ||||
| End price/share: | $35.83 | ||||
| Starting shares: | 352.42 | ||||
| Ending shares: | 352.42 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 26.27% | ||||
| Average annual return: | 1.17% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,620.50 | ||||
As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 1.17%. This would have turned a $10K investment made 20 years ago into $12,620.50 today (as of 04/10/2019). On a total return basis, that’s a result of 26.27% (something to think about: how might NKTR shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” — Seth Klarman
