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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a twenty year holding period for an investor who was considering Regeneron Pharmaceuticals, Inc. (NASD: REGN) back in 1999, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 07/09/1999


End date: 07/08/2019
Start price/share: $8.62
End price/share: $302.84
Starting shares: 1,159.42
Ending shares: 1,159.42
Dividends reinvested/share: $0.00
Total return: 3,411.19%
Average annual return: 19.46%
Starting investment: $10,000.00
Ending investment: $350,991.41

The above analysis shows the twenty year investment result worked out exceptionally well, with an annualized rate of return of 19.46%. This would have turned a $10K investment made 20 years ago into $350,991.41 today (as of 07/08/2019). On a total return basis, that’s a result of 3,411.19% (something to think about: how might REGN shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“If you can follow only one bit of data, follow the earnings.” — Peter Lynch