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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Biogen Inc (NASD: BIIB)? Today, we examine the outcome of a five year investment into the stock back in 2017.

Start date: 12/14/2017


End date: 12/13/2022
Start price/share: $323.55
End price/share: $291.24
Starting shares: 30.91
Ending shares: 30.91
Dividends reinvested/share: $0.00
Total return: -9.99%
Average annual return: -2.08%
Starting investment: $10,000.00
Ending investment: $9,002.37

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -2.08%. This would have turned a $10K investment made 5 years ago into $9,002.37 today (as of 12/13/2022). On a total return basis, that’s a result of -9.99% (something to think about: how might BIIB shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” — Warren Buffett