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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 above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a five year period?

Today, let’s look backwards in time to 2018, and take a look at what happened to investors who asked that very question about Boston Scientific Corp. (NYSE: BSX), by taking a look at the investment outcome over a five year holding period.

Start date: 11/21/2018


End date: 11/20/2023
Start price/share: $34.60
End price/share: $54.46
Starting shares: 289.02
Ending shares: 289.02
Dividends reinvested/share: $0.00
Total return: 57.40%
Average annual return: 9.50%
Starting investment: $10,000.00
Ending investment: $15,742.39

As we can see, the five year investment result worked out well, with an annualized rate of return of 9.50%. This would have turned a $10K investment made 5 years ago into $15,742.39 today (as of 11/20/2023). On a total return basis, that’s a result of 57.40% (something to think about: how might BSX shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“All the opportunity in the world means nothing if you don’t actually pull the trigger.” — Sam Zell