“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 Illumina Inc (NASD: ILMN)? Today, we examine the outcome of a decade-long investment into the stock back in 2012.
| Start date: | 09/12/2012 |
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| End date: | 09/09/2022 | ||||
| Start price/share: | $45.06 | ||||
| End price/share: | $210.35 | ||||
| Starting shares: | 221.93 | ||||
| Ending shares: | 221.93 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 366.82% | ||||
| Average annual return: | 16.66% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $46,669.85 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 16.66%. This would have turned a $10K investment made 10 years ago into $46,669.85 today (as of 09/09/2022). On a total return basis, that’s a result of 366.82% (something to think about: how might ILMN shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” — Charlie Munger
