“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 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 Regeneron Pharmaceuticals, Inc. (NASD: REGN)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 08/16/1999 |
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| End date: | 08/13/2019 | ||||
| Start price/share: | $9.81 | ||||
| End price/share: | $304.86 | ||||
| Starting shares: | 1,019.11 | ||||
| Ending shares: | 1,019.11 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,006.85% | ||||
| Average annual return: | 18.74% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $310,706.00 | ||||
The above analysis shows the twenty year investment result worked out exceptionally well, with an annualized rate of return of 18.74%. This would have turned a $10K investment made 20 years ago into $310,706.00 today (as of 08/13/2019). On a total return basis, that’s a result of 3,006.85% (something to think about: how might REGN 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 stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.” — Seth Klarman
