“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 |
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| 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
