“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a two-decade investment into the stock back in 2002.
| Start date: | 08/12/2002 |
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| End date: | 08/10/2022 | ||||
| Start price/share: | $6.38 | ||||
| End price/share: | $74.13 | ||||
| Starting shares: | 1,567.40 | ||||
| Ending shares: | 1,567.40 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,061.91% | ||||
| Average annual return: | 13.04% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $116,166.39 | ||||
As shown above, the two-decade investment result worked out quite well, with an annualized rate of return of 13.04%. This would have turned a $10K investment made 20 years ago into $116,166.39 today (as of 08/10/2022). On a total return basis, that’s a result of 1,061.91% (something to think about: how might INCY shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Sentimentality about an investments leads to lack of discipline.” — Sam Zell
