“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a two-decade holding period for an investor who was considering Henry Schein Inc (NASD: HSIC) back in 1999, bought the stock, ignored the market’s ups and downs, and simply held through to today.
|Average annual return:||18.08%|
The above analysis shows the two-decade investment result worked out exceptionally well, with an annualized rate of return of 18.08%. This would have turned a $10K investment made 20 years ago into $277,921.65 today (as of 10/25/2019). On a total return basis, that’s a result of 2,679.02% (something to think about: how might HSIC shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Thousands of experts study overbought indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money supplyâ€¦and they can’t predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.” — Peter Lynch