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“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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Vertex Pharmaceuticals, Inc. (NASD: VRTX)? Today, we examine the outcome of a ten year investment into the stock back in 2010.

Start date: 10/29/2010


End date: 10/28/2020
Start price/share: $38.30
End price/share: $208.34
Starting shares: 261.10
Ending shares: 261.10
Dividends reinvested/share: $0.00
Total return: 443.97%
Average annual return: 18.45%
Starting investment: $10,000.00
Ending investment: $54,419.38

The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 18.45%. This would have turned a $10K investment made 10 years ago into $54,419.38 today (as of 10/28/2020). On a total return basis, that’s a result of 443.97% (something to think about: how might VRTX shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.” — Warren Buffett