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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— 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 Boston Scientific Corp. (NYSE: BSX) back in 2000, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 12/18/2000


End date: 12/16/2020
Start price/share: $6.72
End price/share: $35.13
Starting shares: 1,488.10
Ending shares: 1,488.10
Dividends reinvested/share: $0.00
Total return: 422.77%
Average annual return: 8.62%
Starting investment: $10,000.00
Ending investment: $52,298.73

As we can see, the twenty year investment result worked out well, with an annualized rate of return of 8.62%. This would have turned a $10K investment made 20 years ago into $52,298.73 today (as of 12/16/2020). On a total return basis, that’s a result of 422.77% (something to think about: how might BSX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“Most investors want to do today what they should have done yesterday.” — Larry Summers