“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 2011.
| Start date: | 02/28/2011 |
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| End date: | 02/25/2021 | ||||
| Start price/share: | $36.27 | ||||
| End price/share: | $453.19 | ||||
| Starting shares: | 275.71 | ||||
| Ending shares: | 275.71 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,149.49% | ||||
| Average annual return: | 28.73% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $124,967.68 | ||||
As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 28.73%. This would have turned a $10K investment made 10 years ago into $124,967.68 today (as of 02/25/2021). On a total return basis, that’s a result of 1,149.49% (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.]
More investment wisdom to ponder:
“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
