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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 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 Biogen Inc (NASD: BIIB)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 06/14/2019


End date: 06/13/2024
Start price/share: $227.67
End price/share: $233.84
Starting shares: 43.92
Ending shares: 43.92
Dividends reinvested/share: $0.00
Total return: 2.71%
Average annual return: 0.54%
Starting investment: $10,000.00
Ending investment: $10,273.08

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 0.54%. This would have turned a $10K investment made 5 years ago into $10,273.08 today (as of 06/13/2024). On a total return basis, that’s a result of 2.71% (something to think about: how might BIIB shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.” — Peter Lynch