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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: 05/18/2016


End date: 05/17/2021
Start price/share: $264.29
End price/share: $280.40
Starting shares: 37.84
Ending shares: 37.84
Dividends reinvested/share: $0.00
Total return: 6.10%
Average annual return: 1.19%
Starting investment: $10,000.00
Ending investment: $10,609.33

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 1.19%. This would have turned a $10K investment made 5 years ago into $10,609.33 today (as of 05/17/2021). On a total return basis, that’s a result of 6.10% (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.]

Here’s one more great investment quote before you go:
“Money is better than poverty, if only for financial reasons.” — Woody Allen