“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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Biogen Inc (NASD: BIIB)? Today, we examine the outcome of a ten year investment into the stock back in 2013.
| Start date: | 04/08/2013 |
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| End date: | 04/05/2023 | ||||
| Start price/share: | $194.13 | ||||
| End price/share: | $283.99 | ||||
| Starting shares: | 51.51 | ||||
| Ending shares: | 51.51 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 46.29% | ||||
| Average annual return: | 3.88% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $14,631.00 | ||||
As shown above, the ten year investment result worked out as follows, with an annualized rate of return of 3.88%. This would have turned a $10K investment made 10 years ago into $14,631.00 today (as of 04/05/2023). On a total return basis, that’s a result of 46.29% (something to think about: how might BIIB shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“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
