“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 Regeneron Pharmaceuticals, Inc. (NASD: REGN)? Today, we examine the outcome of a ten year investment into the stock back in 2010.
| Start date: | 10/04/2010 |
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| End date: | 10/01/2020 | ||||
| Start price/share: | $28.27 | ||||
| End price/share: | $568.14 | ||||
| Starting shares: | 353.73 | ||||
| Ending shares: | 353.73 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,909.69% | ||||
| Average annual return: | 34.99% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $200,916.67 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 34.99%. This would have turned a $10K investment made 10 years ago into $200,916.67 today (as of 10/01/2020). On a total return basis, that’s a result of 1,909.69% (something to think about: how might REGN shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.” — Charlie Munger
