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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a decade-long period?

Today, let’s look backwards in time to 2009, and take a look at what happened to investors who asked that very question about Varian Medical Systems Inc (NYSE: VAR), by taking a look at the investment outcome over a decade-long holding period.

Start date: 05/07/2009


End date: 05/06/2019
Start price/share: $30.68
End price/share: $137.51
Starting shares: 325.95
Ending shares: 325.95
Dividends reinvested/share: $0.00
Total return: 348.21%
Average annual return: 16.18%
Starting investment: $10,000.00
Ending investment: $44,822.10

The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 16.18%. This would have turned a $10K investment made 10 years ago into $44,822.10 today (as of 05/06/2019). On a total return basis, that’s a result of 348.21% (something to think about: how might VAR shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.” — William Feather