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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a five year period?

Today, let’s look backwards in time to 2019, and take a look at what happened to investors who asked that very question about Boston Scientific Corp. (NYSE: BSX), by taking a look at the investment outcome over a five year holding period.

Start date: 05/24/2019


End date: 05/23/2024
Start price/share: $38.47
End price/share: $74.38
Starting shares: 259.94
Ending shares: 259.94
Dividends reinvested/share: $0.00
Total return: 93.35%
Average annual return: 14.09%
Starting investment: $10,000.00
Ending investment: $19,337.25

As shown above, the five year investment result worked out quite well, with an annualized rate of return of 14.09%. This would have turned a $10K investment made 5 years ago into $19,337.25 today (as of 05/23/2024). On a total return basis, that’s a result of 93.35% (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.]

One more investment quote to leave you with:
“The stock market is a device to transfer money from the impatient to the patient.” — Warren Buffett