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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 Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Vertex Pharmaceuticals, Inc. (NASD: VRTX)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.

Start date: 06/08/2009
$10,000

06/08/2009
$56,253

06/05/2019
End date: 06/05/2019
Start price/share: $30.80
End price/share: $173.27
Starting shares: 324.68
Ending shares: 324.68
Dividends reinvested/share: $0.00
Total return: 462.56%
Average annual return: 18.86%
Starting investment: $10,000.00
Ending investment: $56,253.78

As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 18.86%. This would have turned a $10K investment made 10 years ago into $56,253.78 today (as of 06/05/2019). On a total return basis, that’s a result of 462.56% (something to think about: how might VRTX shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” — Warren Buffett