“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 Celgene Corp (NASD: CELG)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.
| Start date: | 09/16/2009 |
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| End date: | 09/13/2019 | ||||
| Start price/share: | $26.84 | ||||
| End price/share: | $98.40 | ||||
| Starting shares: | 372.58 | ||||
| Ending shares: | 372.58 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 266.62% | ||||
| Average annual return: | 13.88% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $36,670.76 | ||||
The above analysis shows the decade-long investment result worked out quite well, with an annualized rate of return of 13.88%. This would have turned a $10K investment made 10 years ago into $36,670.76 today (as of 09/13/2019). On a total return basis, that’s a result of 266.62% (something to think about: how might CELG shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.” — Warren Buffett
