“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2019.
| Start date: | 04/11/2019 |
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| End date: | 04/10/2024 | ||||
| Start price/share: | $37.92 | ||||
| End price/share: | $68.65 | ||||
| Starting shares: | 263.71 | ||||
| Ending shares: | 263.71 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 81.04% | ||||
| Average annual return: | 12.60% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $18,106.44 | ||||
As we can see, the five year investment result worked out quite well, with an annualized rate of return of 12.60%. This would have turned a $10K investment made 5 years ago into $18,106.44 today (as of 04/10/2024). On a total return basis, that’s a result of 81.04% (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 intelligent investing is value investing: acquiring more that you are paying for. You must value the business in order to value the stock.” — Charlie Munger
