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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 Varian Medical Systems Inc (NYSE: VAR)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.

Start date: 06/11/2009
$10,000

06/11/2009
$39,807

06/10/2019
End date: 06/10/2019
Start price/share: $33.00
End price/share: $131.32
Starting shares: 303.03
Ending shares: 303.03
Dividends reinvested/share: $0.00
Total return: 297.94%
Average annual return: 14.81%
Starting investment: $10,000.00
Ending investment: $39,807.19

As we can see, the decade-long investment result worked out quite well, with an annualized rate of return of 14.81%. This would have turned a $10K investment made 10 years ago into $39,807.19 today (as of 06/10/2019). On a total return basis, that’s a result of 297.94% (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:
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” — Albert Einstein