“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 decade-long 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 decade-long investment into the stock back in 2013.
| Start date: | 11/15/2013 |
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| End date: | 11/14/2023 | ||||
| Start price/share: | $245.09 | ||||
| End price/share: | $225.26 | ||||
| Starting shares: | 40.80 | ||||
| Ending shares: | 40.80 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -8.09% | ||||
| Average annual return: | -0.84% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $9,190.84 | ||||
As shown above, the decade-long investment result worked out poorly, with an annualized rate of return of -0.84%. This would have turned a $10K investment made 10 years ago into $9,190.84 today (as of 11/14/2023). On a total return basis, that’s a result of -8.09% (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:
“Smart investing doesn’t consist of buying good assets but of buying assets well. This is a very, very important distinction that very, very few people understand.” — Howard Marks
