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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 decade-long period?

Today, let’s look backwards in time to 2010, and take a look at what happened to investors who asked that very question about Waters Corp. (NYSE: WAT), by taking a look at the investment outcome over a decade-long holding period.

Start date: 02/16/2010


End date: 02/13/2020
Start price/share: $58.90
End price/share: $220.58
Starting shares: 169.78
Ending shares: 169.78
Dividends reinvested/share: $0.00
Total return: 274.50%
Average annual return: 14.12%
Starting investment: $10,000.00
Ending investment: $37,450.75

As we can see, the decade-long investment result worked out quite well, with an annualized rate of return of 14.12%. This would have turned a $10K investment made 10 years ago into $37,450.75 today (as of 02/13/2020). On a total return basis, that’s a result of 274.50% (something to think about: how might WAT 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:
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby Davis