“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 Biogen Inc (NASD: BIIB)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.
| Start date: | 11/02/2009 |
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| End date: | 10/31/2019 | ||||
| Start price/share: | $42.59 | ||||
| End price/share: | $298.71 | ||||
| Starting shares: | 234.80 | ||||
| Ending shares: | 234.80 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 601.36% | ||||
| Average annual return: | 21.51% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $70,127.51 | ||||
As we can see, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 21.51%. This would have turned a $10K investment made 10 years ago into $70,127.51 today (as of 10/31/2019). On a total return basis, that’s a result of 601.36% (something to think about: how might BIIB shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.” — Seth Klarman
