“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
A critical pearl of wisdom from Warren Buffett teaches us that with any potential stock investment we may make, as soon as our buy order is filled we will have a choice: to remain a co-owner of that company for the long haul, or to react to the inevitable short-term ups and downs that the stock market is famous for (sometimes sharp ups and downs).
The reality of this choice forces us to challenge our confidence in any given company we might invest into, and keep our eyes on the long-term time horizon. The market may go up and down the interim, but over a ten year holding period, will the investment succeed?
Back in 2012, investors may have been asking themselves that very question about Boston Scientific Corp. (NYSE: BSX). Let’s examine what would have happened over a ten year holding period, had you invested in BSX shares back in 2012 and held on.
|Average annual return:||20.93%|
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 20.93%. This would have turned a $10K investment made 10 years ago into $66,921.65 today (as of 05/02/2022). On a total return basis, that’s a result of 569.29% (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:
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” — Seth Klarman