“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 Alexion Pharmaceuticals Inc. (NASD: ALXN)? Today, we examine the outcome of a decade-long investment into the stock back in 2010.
| Start date: | 01/25/2010 |
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| End date: | 01/22/2020 | ||||
| Start price/share: | $23.10 | ||||
| End price/share: | $111.40 | ||||
| Starting shares: | 432.90 | ||||
| Ending shares: | 432.90 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 382.25% | ||||
| Average annual return: | 17.04% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $48,212.09 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 17.04%. This would have turned a $10K investment made 10 years ago into $48,212.09 today (as of 01/22/2020). On a total return basis, that’s a result of 382.25% (something to think about: how might ALXN 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:
“Every day that you’re not selling an asset in your portfolio, you’re choosing to buy it.” — Sam Zell
