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“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


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