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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a two-decade period?

Today, let’s look backwards in time to 2002, and take a look at what happened to investors who asked that very question about Bio-Rad Laboratories Inc (NYSE: BIO), by taking a look at the investment outcome over a two-decade holding period.

Start date: 07/22/2002


End date: 07/20/2022
Start price/share: $37.45
End price/share: $496.04
Starting shares: 267.02
Ending shares: 267.02
Dividends reinvested/share: $0.00
Total return: 1,224.54%
Average annual return: 13.78%
Starting investment: $10,000.00
Ending investment: $132,366.90

As we can see, the two-decade investment result worked out quite well, with an annualized rate of return of 13.78%. This would have turned a $10K investment made 20 years ago into $132,366.90 today (as of 07/20/2022). On a total return basis, that’s a result of 1,224.54% (something to think about: how might BIO shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control.” — Charlie Munger