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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 ten year 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 Celgene Corp (NASD: CELG), by taking a look at the investment outcome over a ten year holding period.

Start date: 07/06/2009


End date: 07/02/2019
Start price/share: $23.66
End price/share: $93.88
Starting shares: 422.65
Ending shares: 422.65
Dividends reinvested/share: $0.00
Total return: 296.79%
Average annual return: 14.79%
Starting investment: $10,000.00
Ending investment: $39,692.85

As we can see, the ten year investment result worked out quite well, with an annualized rate of return of 14.79%. This would have turned a $10K investment made 10 years ago into $39,692.85 today (as of 07/02/2019). On a total return basis, that’s a result of 296.79% (something to think about: how might CELG 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:
“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” — Mark Cuban