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“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 Boston Scientific Corp. (NYSE: BSX) back in 1999, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 10/04/1999


End date: 10/01/2019
Start price/share: $11.97
End price/share: $40.24
Starting shares: 835.42
Ending shares: 835.42
Dividends reinvested/share: $0.00
Total return: 236.17%
Average annual return: 6.25%
Starting investment: $10,000.00
Ending investment: $33,629.70

The above analysis shows the two-decade investment result worked out well, with an annualized rate of return of 6.25%. This would have turned a $10K investment made 20 years ago into $33,629.70 today (as of 10/01/2019). On a total return basis, that’s a result of 236.17% (something to think about: how might BSX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” — Peter Lynch