“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 |
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| 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
