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“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 decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Vertex Pharmaceuticals, Inc. (NASD: VRTX)? Today, we examine the outcome of a decade-long investment into the stock back in 2011.

Start date: 08/31/2011


End date: 08/30/2021
Start price/share: $45.27
End price/share: $199.49
Starting shares: 220.90
Ending shares: 220.90
Dividends reinvested/share: $0.00
Total return: 340.67%
Average annual return: 15.98%
Starting investment: $10,000.00
Ending investment: $44,074.14

As we can see, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 15.98%. This would have turned a $10K investment made 10 years ago into $44,074.14 today (as of 08/30/2021). On a total return basis, that’s a result of 340.67% (something to think about: how might VRTX shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“If you have more than 120 or 130 I.Q. points, you can afford to give the rest away. You don’t need extraordinary intelligence to succeed as an investor.” — Warren Buffett