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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 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 decade-long period?

Today, let’s look backwards in time to 2012, and take a look at what happened to investors who asked that very question about Incyte Corporation (NASD: INCY), by taking a look at the investment outcome over a decade-long holding period.

Start date: 08/30/2012


End date: 08/29/2022
Start price/share: $19.92
End price/share: $70.51
Starting shares: 502.01
Ending shares: 502.01
Dividends reinvested/share: $0.00
Total return: 253.97%
Average annual return: 13.47%
Starting investment: $10,000.00
Ending investment: $35,396.55

As we can see, the decade-long investment result worked out quite well, with an annualized rate of return of 13.47%. This would have turned a $10K investment made 10 years ago into $35,396.55 today (as of 08/29/2022). On a total return basis, that’s a result of 253.97% (something to think about: how might INCY shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.” — Warren Buffett