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“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


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