“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 Varian Medical Systems Inc (NYSE: VAR)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.
| Start date: | 10/30/2009 |
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| End date: | 10/29/2019 | ||||
| Start price/share: | $35.94 | ||||
| End price/share: | $121.44 | ||||
| Starting shares: | 278.24 | ||||
| Ending shares: | 278.24 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 237.90% | ||||
| Average annual return: | 12.94% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $33,777.12 | ||||
As shown above, the decade-long investment result worked out quite well, with an annualized rate of return of 12.94%. This would have turned a $10K investment made 10 years ago into $33,777.12 today (as of 10/29/2019). On a total return basis, that’s a result of 237.90% (something to think about: how might VAR shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“He who earns and does not invest will have to work for the rest of his life.” — Debasish Mridha
