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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: 10/24/2018


End date: 10/23/2023
Start price/share: $302.05
End price/share: $253.39
Starting shares: 33.11
Ending shares: 33.11
Dividends reinvested/share: $0.00
Total return: -16.11%
Average annual return: -3.45%
Starting investment: $10,000.00
Ending investment: $8,389.99

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -3.45%. This would have turned a $10K investment made 5 years ago into $8,389.99 today (as of 10/23/2023). On a total return basis, that’s a result of -16.11% (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.]

One more piece of investment wisdom to leave you with:
“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.” — Benjamin Graham