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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 Boston Scientific Corp. (NYSE: BSX), by taking a look at the investment outcome over a decade-long holding period.

Start date: 06/25/2009
$10,000

06/25/2009
$42,010

06/24/2019
End date: 06/24/2019
Start price/share: $10.00
End price/share: $42.01
Starting shares: 1,000.00
Ending shares: 1,000.00
Dividends reinvested/share: $0.00
Total return: 320.10%
Average annual return: 15.43%
Starting investment: $10,000.00
Ending investment: $42,010.48

The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 15.43%. This would have turned a $10K investment made 10 years ago into $42,010.48 today (as of 06/24/2019). On a total return basis, that’s a result of 320.10% (something to think about: how might BSX shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch