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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2018.

Start date: 08/15/2018


End date: 08/14/2023
Start price/share: $340.72
End price/share: $272.74
Starting shares: 29.35
Ending shares: 29.35
Dividends reinvested/share: $0.00
Total return: -19.95%
Average annual return: -4.35%
Starting investment: $10,000.00
Ending investment: $8,006.17

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -4.35%. This would have turned a $10K investment made 5 years ago into $8,006.17 today (as of 08/14/2023). On a total return basis, that’s a result of -19.95% (something to think about: how might BIIB shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“If I’ve learned one thing in this life it’s this: even if you lose, don’t lose the lesson.” — Daymond John