“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 two-decade 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 two-decade investment into the stock back in 1999.
| Start date: | 10/29/1999 |
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| End date: | 10/28/2019 | ||||
| Start price/share: | $1.27 | ||||
| End price/share: | $105.70 | ||||
| Starting shares: | 7,874.02 | ||||
| Ending shares: | 7,874.02 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 8,222.83% | ||||
| Average annual return: | 24.73% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $832,664.76 | ||||
As shown above, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 24.73%. This would have turned a $10K investment made 20 years ago into $832,664.76 today (as of 10/28/2019). On a total return basis, that’s a result of 8,222.83% (something to think about: how might CELG shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.” — Dave Ramsey
