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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 twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Boston Scientific Corp. (NYSE: BSX)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.

Start date: 07/12/1999


End date: 07/09/2019
Start price/share: $23.00
End price/share: $43.06
Starting shares: 434.78
Ending shares: 434.78
Dividends reinvested/share: $0.00
Total return: 87.22%
Average annual return: 3.18%
Starting investment: $10,000.00
Ending investment: $18,706.17

As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 3.18%. This would have turned a $10K investment made 20 years ago into $18,706.17 today (as of 07/09/2019). On a total return basis, that’s a result of 87.22% (something to think about: how might BSX 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:
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” — Warren Buffett