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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 Illumina Inc (NASD: ILMN)? Today, we examine the outcome of a decade-long investment into the stock back in 2014.

Start date: 02/26/2014


End date: 02/23/2024
Start price/share: $176.69
End price/share: $133.00
Starting shares: 56.60
Ending shares: 56.60
Dividends reinvested/share: $0.00
Total return: -24.73%
Average annual return: -2.80%
Starting investment: $10,000.00
Ending investment: $7,528.29

As shown above, the decade-long investment result worked out poorly, with an annualized rate of return of -2.80%. This would have turned a $10K investment made 10 years ago into $7,528.29 today (as of 02/23/2024). On a total return basis, that’s a result of -24.73% (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.]

Another great investment quote to think about:
“Don’t look for the needle in the haystack, just buy the haystack.” — John Bogle