“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 Boston Scientific Corp. (NYSE: BSX)? Today, we examine the outcome of a decade-long investment into the stock back in 2009.
| Start date: | 11/25/2009 |
|
|||
| End date: | 11/22/2019 | ||||
| Start price/share: | $8.64 | ||||
| End price/share: | $41.85 | ||||
| Starting shares: | 1,157.41 | ||||
| Ending shares: | 1,157.41 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 384.38% | ||||
| Average annual return: | 17.09% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $48,418.39 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 17.09%. This would have turned a $10K investment made 10 years ago into $48,418.39 today (as of 11/22/2019). On a total return basis, that’s a result of 384.38% (something to think about: how might BSX 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:
“Investing is the intersection of economics and psychology.” — Seth Klarman
