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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: 12/16/2016


End date: 12/15/2021
Start price/share: $286.40
End price/share: $235.88
Starting shares: 34.92
Ending shares: 34.92
Dividends reinvested/share: $0.00
Total return: -17.64%
Average annual return: -3.81%
Starting investment: $10,000.00
Ending investment: $8,234.73

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -3.81%. This would have turned a $10K investment made 5 years ago into $8,234.73 today (as of 12/15/2021). On a total return basis, that’s a result of -17.64% (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.]

One more piece of investment wisdom to leave you with:
“Be fearful when others are greedy; be greedy when others are fearful.” — Warren Buffett