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“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
$10,000

11/02/2009
$70,127

10/31/2019
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