“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 Illumina Inc (NASD: ILMN)? Today, we examine the outcome of a ten year investment into the stock back in 2013.
| Start date: | 10/31/2013 |
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| End date: | 10/30/2023 | ||||
| Start price/share: | $93.51 | ||||
| End price/share: | $107.87 | ||||
| Starting shares: | 106.94 | ||||
| Ending shares: | 106.94 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 15.36% | ||||
| Average annual return: | 1.44% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $11,537.44 | ||||
As we can see, the ten year investment result worked out as follows, with an annualized rate of return of 1.44%. This would have turned a $10K investment made 10 years ago into $11,537.44 today (as of 10/30/2023). On a total return basis, that’s a result of 15.36% (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.]
More investment wisdom to ponder:
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” — Warren Buffett
