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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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a two-decade investment into the stock back in 2000.

Start date: 07/21/2000


End date: 07/20/2020
Start price/share: $48.69
End price/share: $109.69
Starting shares: 205.38
Ending shares: 205.38
Dividends reinvested/share: $0.00
Total return: 125.28%
Average annual return: 4.14%
Starting investment: $10,000.00
Ending investment: $22,518.76

As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 4.14%. This would have turned a $10K investment made 20 years ago into $22,518.76 today (as of 07/20/2020). On a total return basis, that’s a result of 125.28% (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.]

Here’s one more great investment quote before you go:
“The person who starts simply with the idea of getting rich won’t succeed; you must have a larger ambition.” — John Rockefeller