“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.
|Average annual return:||14.79%|
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