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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 2000.

Start date: 01/31/2000
$10,000

01/31/2000
$22,005

01/30/2020
End date: 01/30/2020
Start price/share: $126.19
End price/share: $277.53
Starting shares: 79.25
Ending shares: 79.25
Dividends reinvested/share: $0.00
Total return: 119.93%
Average annual return: 4.02%
Starting investment: $10,000.00
Ending investment: $22,005.16

As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 4.02%. This would have turned a $10K investment made 20 years ago into $22,005.16 today (as of 01/30/2020). On a total return basis, that’s a result of 119.93% (something to think about: how might BIIB shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.” — Benjamin Graham