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“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


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