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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: 05/15/2014


End date: 05/14/2024
Start price/share: $144.75
End price/share: $115.58
Starting shares: 69.08
Ending shares: 69.08
Dividends reinvested/share: $0.00
Total return: -20.15%
Average annual return: -2.22%
Starting investment: $10,000.00
Ending investment: $7,988.16

As shown above, the decade-long investment result worked out poorly, with an annualized rate of return of -2.22%. This would have turned a $10K investment made 10 years ago into $7,988.16 today (as of 05/14/2024). On a total return basis, that’s a result of -20.15% (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.]

One more investment quote to leave you with:
“Investors should always keep in mind that the most important metric is not the returns achieved but the returns weighed against the risks incurred. Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.” — Seth Klarman