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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a twenty year holding period for an investor who was considering Biogen Inc (NASD: BIIB) back in 2002, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 09/09/2002


End date: 09/06/2022
Start price/share: $42.10
End price/share: $194.69
Starting shares: 237.53
Ending shares: 237.53
Dividends reinvested/share: $0.00
Total return: 362.45%
Average annual return: 7.96%
Starting investment: $10,000.00
Ending investment: $46,284.95

As we can see, the twenty year investment result worked out well, with an annualized rate of return of 7.96%. This would have turned a $10K investment made 20 years ago into $46,284.95 today (as of 09/06/2022). On a total return basis, that’s a result of 362.45% (something to think about: how might BIIB shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“Sentimentality about an investments leads to lack of discipline.” — Sam Zell