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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a decade-long period?

Today, let’s look backwards in time to 2009, and take a look at what happened to investors who asked that very question about Berkshire Hathaway Inc New (NYSE: BRK.B), by taking a look at the investment outcome over a decade-long holding period.

Start date: 09/14/2009


End date: 09/11/2019
Start price/share: $65.14
End price/share: $210.91
Starting shares: 153.52
Ending shares: 153.52
Dividends reinvested/share: $0.00
Total return: 223.78%
Average annual return: 12.47%
Starting investment: $10,000.00
Ending investment: $32,376.29

The above analysis shows the decade-long investment result worked out quite well, with an annualized rate of return of 12.47%. This would have turned a $10K investment made 10 years ago into $32,376.29 today (as of 09/11/2019). On a total return basis, that’s a result of 223.78% (something to think about: how might BRK.B 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:
“When you sell in desperation, you always sell cheap.” — Peter Lynch