“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The investment philosophy practiced by Warren Buffett calls for investors to take a long-term horizon when making an investment, such as a five year holding period (or even longer), and reconsider making the investment in the first place if unable to envision holding the stock for at least five years. Today, we look at how such a long-term strategy would have done for investors in Illumina Inc (NASD: ILMN) back in 2016, holding through to today.
|Average annual return:||21.56%|
As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 21.56%. This would have turned a $10K investment made 5 years ago into $26,514.83 today (as of 03/05/2021). On a total return basis, that’s a result of 165.14% (something to think about: how might ILMN 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:
“Every day that you’re not selling an asset in your portfolio, you’re choosing to buy it.” — Sam Zell