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

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a twenty year holding period for an investor who was considering Regeneron Pharmaceuticals, Inc. (NASD: REGN) back in 2000, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 09/18/2000


End date: 09/16/2020
Start price/share: $32.06
End price/share: $569.15
Starting shares: 311.89
Ending shares: 311.89
Dividends reinvested/share: $0.00
Total return: 1,675.13%
Average annual return: 15.46%
Starting investment: $10,000.00
Ending investment: $177,477.87

As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 15.46%. This would have turned a $10K investment made 20 years ago into $177,477.87 today (as of 09/16/2020). On a total return basis, that’s a result of 1,675.13% (something to think about: how might REGN shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.” — Peter Lynch