“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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a ten year investment into the stock back in 2014.
| Start date: | 06/30/2014 |
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| End date: | 06/27/2024 | ||||
| Start price/share: | $56.44 | ||||
| End price/share: | $61.35 | ||||
| Starting shares: | 177.18 | ||||
| Ending shares: | 177.18 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 8.70% | ||||
| Average annual return: | 0.84% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,872.47 | ||||
As we can see, the ten year investment result worked out as follows, with an annualized rate of return of 0.84%. This would have turned a $10K investment made 10 years ago into $10,872.47 today (as of 06/27/2024). On a total return basis, that’s a result of 8.70% (something to think about: how might INCY shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby Davis
