“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Boston Scientific Corp. (NYSE: BSX)? Today, we examine the outcome of a twenty year investment into the stock back in 2004.
| Start date: | 03/29/2004 |
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| End date: | 03/26/2024 | ||||
| Start price/share: | $43.14 | ||||
| End price/share: | $67.94 | ||||
| Starting shares: | 231.80 | ||||
| Ending shares: | 231.80 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 57.49% | ||||
| Average annual return: | 2.30% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,759.40 | ||||
The above analysis shows the twenty year investment result worked out as follows, with an annualized rate of return of 2.30%. This would have turned a $10K investment made 20 years ago into $15,759.40 today (as of 03/26/2024). On a total return basis, that’s a result of 57.49% (something to think about: how might BSX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“I think you have to learn that there’s a company behind every stock, and that there’s only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.” — Peter Lynch
