“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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.
| Start date: | 07/20/2009 |
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| End date: | 07/18/2019 | ||||
| Start price/share: | $3.99 | ||||
| End price/share: | $81.31 | ||||
| Starting shares: | 2,506.27 | ||||
| Ending shares: | 2,506.27 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,937.84% | ||||
| Average annual return: | 35.18% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $203,762.58 | ||||
As we can see, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 35.18%. This would have turned a $10K investment made 10 years ago into $203,762.58 today (as of 07/18/2019). On a total return basis, that’s a result of 1,937.84% (something to think about: how might INCY shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” — George Soros
