“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 Edwards Lifesciences Corp (NYSE: EW)? Today, we examine the outcome of a ten year investment into the stock back in 2013.
| Start date: | 10/07/2013 |
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| End date: | 10/04/2023 | ||||
| Start price/share: | $12.10 | ||||
| End price/share: | $71.27 | ||||
| Starting shares: | 826.45 | ||||
| Ending shares: | 826.45 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 489.01% | ||||
| Average annual return: | 19.41% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $58,910.93 | ||||
As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 19.41%. This would have turned a $10K investment made 10 years ago into $58,910.93 today (as of 10/04/2023). On a total return basis, that’s a result of 489.01% (something to think about: how might EW shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“Investors should purchase stocks like they purchase groceries, not like they purchase perfume.” — Benjamin Graham
