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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 above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a ten year period?

Today, let’s look backwards in time to 2009, and take a look at what happened to investors who asked that very question about Celgene Corp (NASD: CELG), by taking a look at the investment outcome over a ten year holding period.

Start date: 11/13/2009
$10,000

11/13/2009
$41,144

11/12/2019
End date: 11/12/2019
Start price/share: $26.74
End price/share: $110.00
Starting shares: 373.97
Ending shares: 373.97
Dividends reinvested/share: $0.00
Total return: 311.37%
Average annual return: 15.19%
Starting investment: $10,000.00
Ending investment: $41,144.90

The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 15.19%. This would have turned a $10K investment made 10 years ago into $41,144.90 today (as of 11/12/2019). On a total return basis, that’s a result of 311.37% (something to think about: how might CELG shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“I think you have to learn that there’s a company behind every stock, and that there’s only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.” — Peter Lynch