“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 decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Biogen Inc (NASD: BIIB)? Today, we examine the outcome of a decade-long investment into the stock back in 2012.
| Start date: | 08/17/2012 |
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| End date: | 08/16/2022 | ||||
| Start price/share: | $145.09 | ||||
| End price/share: | $219.64 | ||||
| Starting shares: | 68.92 | ||||
| Ending shares: | 68.92 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 51.38% | ||||
| Average annual return: | 4.23% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,134.80 | ||||
The above analysis shows the decade-long investment result worked out as follows, with an annualized rate of return of 4.23%. This would have turned a $10K investment made 10 years ago into $15,134.80 today (as of 08/16/2022). On a total return basis, that’s a result of 51.38% (something to think about: how might BIIB shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.” — Benjamin Graham
