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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 2016.

Start date: 04/19/2016


End date: 04/16/2021
Start price/share: $271.00
End price/share: $270.31
Starting shares: 36.90
Ending shares: 36.90
Dividends reinvested/share: $0.00
Total return: -0.25%
Average annual return: -0.05%
Starting investment: $10,000.00
Ending investment: $9,975.05

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -0.05%. This would have turned a $10K investment made 5 years ago into $9,975.05 today (as of 04/16/2021). On a total return basis, that’s a result of -0.25% (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.]

One more piece of investment wisdom to leave you with:
“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.” — Benjamin Graham