“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Boston Scientific Corp. (NYSE: BSX)? Today, we examine the outcome of a decade-long investment into the stock back in 2010.
| Start date: | 09/10/2010 |
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| End date: | 09/09/2020 | ||||
| Start price/share: | $5.33 | ||||
| End price/share: | $41.53 | ||||
| Starting shares: | 1,876.17 | ||||
| Ending shares: | 1,876.17 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 679.17% | ||||
| Average annual return: | 22.78% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $77,940.76 | ||||
As we can see, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 22.78%. This would have turned a $10K investment made 10 years ago into $77,940.76 today (as of 09/09/2020). On a total return basis, that’s a result of 679.17% (something to think about: how might BSX shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.” — Warren Buffett
