“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— 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 Boston Scientific Corp. (NYSE: BSX)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 05/06/1999 |
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| End date: | 05/03/2019 | ||||
| Start price/share: | $20.38 | ||||
| End price/share: | $37.20 | ||||
| Starting shares: | 490.68 | ||||
| Ending shares: | 490.68 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 82.53% | ||||
| Average annual return: | 3.05% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $18,240.28 | ||||
As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 3.05%. This would have turned a $10K investment made 20 years ago into $18,240.28 today (as of 05/03/2019). On a total return basis, that’s a result of 82.53% (something to think about: how might BSX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.” — Warren Buffett
