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“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


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