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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 1999.

Start date: 07/19/1999


End date: 07/18/2019
Start price/share: $24.12
End price/share: $32.07
Starting shares: 414.51
Ending shares: 414.51
Dividends reinvested/share: $0.00
Total return: 32.93%
Average annual return: 1.43%
Starting investment: $10,000.00
Ending investment: $13,286.06

As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 1.43%. This would have turned a $10K investment made 20 years ago into $13,286.06 today (as of 07/18/2019). On a total return basis, that’s a result of 32.93% (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.]

Here’s one more great investment quote before you go:
“The most important thing about an investment philosophy is that you have one.” — David Booth