“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: | 12/24/2012 |
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| End date: | 12/22/2022 | ||||
| Start price/share: | $56.10 | ||||
| End price/share: | $195.78 | ||||
| Starting shares: | 178.25 | ||||
| Ending shares: | 178.25 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 248.98% | ||||
| Average annual return: | 13.31% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $34,888.51 | ||||
As shown above, the decade-long investment result worked out quite well, with an annualized rate of return of 13.31%. This would have turned a $10K investment made 10 years ago into $34,888.51 today (as of 12/22/2022). On a total return basis, that’s a result of 248.98% (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.]
More investment wisdom to ponder:
“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.” — Peter Lynch
