“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— 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 Nektar Therapeutics (NASD: NKTR)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 06/03/1999 |
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| End date: | 05/31/2019 | ||||
| Start price/share: | $25.50 | ||||
| End price/share: | $31.32 | ||||
| Starting shares: | 392.16 | ||||
| Ending shares: | 392.16 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 22.82% | ||||
| Average annual return: | 1.03% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,275.28 | ||||
As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 1.03%. This would have turned a $10K investment made 20 years ago into $12,275.28 today (as of 05/31/2019). On a total return basis, that’s a result of 22.82% (something to think about: how might NKTR shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.” — Peter Lynch
