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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

Investors can learn a lot from Warren Buffett, whose above quote teaches the importance of thinking about investment time horizon, and asking ourselves before buying any given stock: can we envision holding onto it for years — even a ten year holding period possibly?

Suppose a “buy-and-hold” investor was considering an investment into Waters Corp. (NYSE: WAT) back in 2013: back then, such an investor may have been pondering this very same question. Had they answered “yes” to a full ten year investment time horizon and then actually held for these past 10 years, here’s how that investment would have turned out.

Start date: 02/27/2013


End date: 02/24/2023
Start price/share: $92.98
End price/share: $314.05
Starting shares: 107.55
Ending shares: 107.55
Dividends reinvested/share: $0.00
Total return: 237.76%
Average annual return: 12.95%
Starting investment: $10,000.00
Ending investment: $33,784.50

As we can see, the ten year investment result worked out quite well, with an annualized rate of return of 12.95%. This would have turned a $10K investment made 10 years ago into $33,784.50 today (as of 02/24/2023). On a total return basis, that’s a result of 237.76% (something to think about: how might WAT shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.” — Seth Klarman