“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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into ABIOMED, Inc. (NASD: ABMD)? Today, we examine the outcome of a ten year investment into the stock back in 2009.
| Start date: | 06/05/2009 |
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| End date: | 06/04/2019 | ||||
| Start price/share: | $7.30 | ||||
| End price/share: | $267.06 | ||||
| Starting shares: | 1,369.86 | ||||
| Ending shares: | 1,369.86 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,558.36% | ||||
| Average annual return: | 43.31% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $365,757.39 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 43.31%. This would have turned a $10K investment made 10 years ago into $365,757.39 today (as of 06/04/2019). On a total return basis, that’s a result of 3,558.36% (something to think about: how might ABMD shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“The investor’s chief problem, even his worst enemy, is likely to be himself.” — Benjamin Graham
