“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.
|Average annual return:||4.14%|
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