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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

A critical pearl of wisdom from Warren Buffett teaches us that with any potential stock investment we may make, as soon as our buy order is filled we will have a choice: to remain a co-owner of that company for the long haul, or to react to the inevitable short-term ups and downs that the stock market is famous for (sometimes sharp ups and downs).

The reality of this choice forces us to challenge our confidence in any given company we might invest into, and keep our eyes on the long-term time horizon. The market may go up and down the interim, but over a decade-long holding period, will the investment succeed?

Back in 2009, investors may have been asking themselves that very question about Edwards Lifesciences Corp (NYSE: EW). Let’s examine what would have happened over a decade-long holding period, had you invested in EW shares back in 2009 and held on.

Start date: 09/04/2009
$10,000

09/04/2009
$137,427

09/03/2019
End date: 09/03/2019
Start price/share: $15.91
End price/share: $218.61
Starting shares: 628.54
Ending shares: 628.54
Dividends reinvested/share: $0.00
Total return: 1,274.04%
Average annual return: 29.95%
Starting investment: $10,000.00
Ending investment: $137,427.79

The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 29.95%. This would have turned a $10K investment made 10 years ago into $137,427.79 today (as of 09/03/2019). On a total return basis, that’s a result of 1,274.04% (something to think about: how might EW shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“If you have more than 120 or 130 I.Q. points, you can afford to give the rest away. You don’t need extraordinary intelligence to succeed as an investor.” — Warren Buffett