“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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a two-decade investment into the stock back in 2000.
| Start date: | 04/14/2000 |
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| End date: | 04/13/2020 | ||||
| Start price/share: | $37.38 | ||||
| End price/share: | $88.01 | ||||
| Starting shares: | 267.52 | ||||
| Ending shares: | 267.52 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 135.45% | ||||
| Average annual return: | 4.37% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $23,535.16 | ||||
As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 4.37%. This would have turned a $10K investment made 20 years ago into $23,535.16 today (as of 04/13/2020). On a total return basis, that’s a result of 135.45% (something to think about: how might INCY shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“Cash combined with courage in a time of crisis is priceless.” — Warren Buffett
