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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a twenty year holding period for an investor who was considering Boston Scientific Corp. (NYSE: BSX) back in 2002, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 02/28/2002


End date: 02/25/2022
Start price/share: $11.18
End price/share: $45.10
Starting shares: 894.45
Ending shares: 894.45
Dividends reinvested/share: $0.00
Total return: 303.40%
Average annual return: 7.22%
Starting investment: $10,000.00
Ending investment: $40,334.99

As shown above, the twenty year investment result worked out well, with an annualized rate of return of 7.22%. This would have turned a $10K investment made 20 years ago into $40,334.99 today (as of 02/25/2022). On a total return basis, that’s a result of 303.40% (something to think about: how might BSX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“The individual investor should act consistently as an investor and not as a speculator.” — Benjamin Graham