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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten 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 ten year investment into the stock back in 2012.

Start date: 06/04/2012


End date: 06/02/2022
Start price/share: $40.50
End price/share: $248.53
Starting shares: 246.91
Ending shares: 246.91
Dividends reinvested/share: $0.00
Total return: 513.65%
Average annual return: 19.89%
Starting investment: $10,000.00
Ending investment: $61,352.12

The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 19.89%. This would have turned a $10K investment made 10 years ago into $61,352.12 today (as of 06/02/2022). On a total return basis, that’s a result of 513.65% (something to think about: how might ILMN shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.” — Warren Buffett