“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 2004.
| Start date: | 10/07/2004 |
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| End date: | 10/04/2024 | ||||
| Start price/share: | $38.04 | ||||
| End price/share: | $84.54 | ||||
| Starting shares: | 262.88 | ||||
| Ending shares: | 262.88 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 122.24% | ||||
| Average annual return: | 4.07% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $22,212.94 | ||||
As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 4.07%. This would have turned a $10K investment made 20 years ago into $22,212.94 today (as of 10/04/2024). On a total return basis, that’s a result of 122.24% (something to think about: how might BSX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.” — Bernard Baruch
