“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 2013.
| Start date: | 03/11/2013 |
|
|||
| End date: | 03/08/2023 | ||||
| Start price/share: | $53.79 | ||||
| End price/share: | $208.03 | ||||
| Starting shares: | 185.91 | ||||
| Ending shares: | 185.91 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 286.74% | ||||
| Average annual return: | 14.49% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $38,682.50 | ||||
The above analysis shows the decade-long investment result worked out quite well, with an annualized rate of return of 14.49%. This would have turned a $10K investment made 10 years ago into $38,682.50 today (as of 03/08/2023). On a total return basis, that’s a result of 286.74% (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.]
One more investment quote to leave you with:
“Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.” — Peter Lynch
