“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Illumina Inc (NASD: ILMN)? Today, we examine the outcome of a twenty year investment into the stock back in 2002.
| Start date: | 06/17/2002 |
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| End date: | 06/16/2022 | ||||
| Start price/share: | $2.83 | ||||
| End price/share: | $187.77 | ||||
| Starting shares: | 3,533.57 | ||||
| Ending shares: | 3,533.57 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 6,534.98% | ||||
| Average annual return: | 23.32% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $663,235.78 | ||||
As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 23.32%. This would have turned a $10K investment made 20 years ago into $663,235.78 today (as of 06/16/2022). On a total return basis, that’s a result of 6,534.98% (something to think about: how might ILMN 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 investor’s chief problem, even his worst enemy, is likely to be himself.” — Benjamin Graham
