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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— 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: 07/14/2000


End date: 07/13/2020
Start price/share: $118.00
End price/share: $276.52
Starting shares: 84.75
Ending shares: 84.75
Dividends reinvested/share: $0.00
Total return: 134.34%
Average annual return: 4.35%
Starting investment: $10,000.00
Ending investment: $23,445.08

As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 4.35%. This would have turned a $10K investment made 20 years ago into $23,445.08 today (as of 07/13/2020). On a total return basis, that’s a result of 134.34% (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.]

Here’s one more great investment quote before you go:
“You’ve got to be careful if you don’t know where you’re going, ’cause you might not get there.” — Yogi Berra