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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Biogen Inc (NASD: BIIB)? Today, we examine the outcome of a five year investment into the stock back in 2015.

Start date: 11/02/2015


End date: 10/30/2020
Start price/share: $303.08
End price/share: $252.07
Starting shares: 32.99
Ending shares: 32.99
Dividends reinvested/share: $0.00
Total return: -16.83%
Average annual return: -3.62%
Starting investment: $10,000.00
Ending investment: $8,318.07

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -3.62%. This would have turned a $10K investment made 5 years ago into $8,318.07 today (as of 10/30/2020). On a total return basis, that’s a result of -16.83% (something to think about: how might BIIB shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.” — Charlie Munger