“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Boston Scientific Corp. (NYSE: BSX)? Today, we examine the outcome of a twenty year investment into the stock back in 2003.
| Start date: | 01/21/2003 |
|
|||
| End date: | 01/17/2023 | ||||
| Start price/share: | $22.03 | ||||
| End price/share: | $46.04 | ||||
| Starting shares: | 453.93 | ||||
| Ending shares: | 453.93 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 108.99% | ||||
| Average annual return: | 3.75% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $20,883.63 | ||||
As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 3.75%. This would have turned a $10K investment made 20 years ago into $20,883.63 today (as of 01/17/2023). On a total return basis, that’s a result of 108.99% (something to think about: how might BSX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Finding the best person or the best organization to invest your money is one of the most important financial decisions you’ll ever make.” — Bill Gross
