“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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a ten year investment into the stock back in 2011.
| Start date: | 08/26/2011 |
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| End date: | 08/25/2021 | ||||
| Start price/share: | $14.68 | ||||
| End price/share: | $75.76 | ||||
| Starting shares: | 681.20 | ||||
| Ending shares: | 681.20 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 416.08% | ||||
| Average annual return: | 17.82% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $51,591.77 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 17.82%. This would have turned a $10K investment made 10 years ago into $51,591.77 today (as of 08/25/2021). On a total return basis, that’s a result of 416.08% (something to think about: how might INCY shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” — Oscar Wilde
