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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

This inspiring quote from Warren Buffett teaches us the importance of considering our investment time horizon when approaching any given investment: Could we envision ourselves holding the stock we are considering for many years? Even a ten year holding period potentially?

For “buy-and-hold” investors taking a long-term view, what’s important isn’t the short-term stock market fluctuations that will inevitably occur, but what happens over the long haul. Looking back 10 years to 2011, investors considering an investment into shares of Waters Corp. (NYSE: WAT) may have been pondering this very question and thinking about their potential investment result over a full ten year time horizon. Here’s how that would have worked out.

Start date: 10/10/2011


End date: 10/07/2021
Start price/share: $75.91
End price/share: $346.31
Starting shares: 131.73
Ending shares: 131.73
Dividends reinvested/share: $0.00
Total return: 356.21%
Average annual return: 16.39%
Starting investment: $10,000.00
Ending investment: $45,620.15

As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 16.39%. This would have turned a $10K investment made 10 years ago into $45,620.15 today (as of 10/07/2021). On a total return basis, that’s a result of 356.21% (something to think about: how might WAT shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“I think you have to learn that there’s a company behind every stock, and that there’s only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.” — Peter Lynch