“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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Waters Corp. (NYSE: WAT)? Today, we examine the outcome of a ten year investment into the stock back in 2009.
| Start date: | 10/12/2009 |
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| End date: | 10/10/2019 | ||||
| Start price/share: | $57.62 | ||||
| End price/share: | $211.30 | ||||
| Starting shares: | 173.55 | ||||
| Ending shares: | 173.55 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 266.71% | ||||
| Average annual return: | 13.88% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $36,683.82 | ||||
As we can see, the ten year investment result worked out quite well, with an annualized rate of return of 13.88%. This would have turned a $10K investment made 10 years ago into $36,683.82 today (as of 10/10/2019). On a total return basis, that’s a result of 266.71% (something to think about: how might WAT shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Sometimes buying early on the way down looks like being wrong, but it isn’t.” — Seth Klarman
