“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a ten year period?
Today, let’s look backwards in time to 2011, and take a look at what happened to investors who asked that very question about Boston Scientific Corp. (NYSE: BSX), by taking a look at the investment outcome over a ten year holding period.
|Average annual return:||23.39%|
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 23.39%. This would have turned a $10K investment made 10 years ago into $81,903.00 today (as of 10/19/2021). On a total return basis, that’s a result of 718.74% (something to think about: how might BSX 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:
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.” — Warren Buffett