“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— 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 Idexx Laboratories, Inc. (NASD: IDXX)? Today, we examine the outcome of a two-decade investment into the stock back in 1999.
| Start date: | 08/20/1999 |
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| End date: | 08/19/2019 | ||||
| Start price/share: | $4.14 | ||||
| End price/share: | $279.53 | ||||
| Starting shares: | 2,415.46 | ||||
| Ending shares: | 2,415.46 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 6,651.93% | ||||
| Average annual return: | 23.43% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $675,175.15 | ||||
As shown above, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 23.43%. This would have turned a $10K investment made 20 years ago into $675,175.15 today (as of 08/19/2019). On a total return basis, that’s a result of 6,651.93% (something to think about: how might IDXX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money.” — Ray Dalio
