“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 Edwards Lifesciences Corp (NYSE: EW)? Today, we examine the outcome of a ten year investment into the stock back in 2012.
| Start date: | 07/30/2012 |
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| End date: | 07/28/2022 | ||||
| Start price/share: | $17.24 | ||||
| End price/share: | $107.29 | ||||
| Starting shares: | 580.05 | ||||
| Ending shares: | 580.05 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 522.33% | ||||
| Average annual return: | 20.06% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $62,227.65 | ||||
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 20.06%. This would have turned a $10K investment made 10 years ago into $62,227.65 today (as of 07/28/2022). On a total return basis, that’s a result of 522.33% (something to think about: how might EW 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:
“All intelligent investing is value investing: acquiring more that you are paying for. You must value the business in order to value the stock.” — Charlie Munger
