“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 Biogen Inc (NASD: BIIB)? Today, we examine the outcome of a decade-long investment into the stock back in 2014.
| Start date: | 12/29/2014 |
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| End date: | 12/26/2024 | ||||
| Start price/share: | $343.43 | ||||
| End price/share: | $149.90 | ||||
| Starting shares: | 29.12 | ||||
| Ending shares: | 29.12 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -56.35% | ||||
| Average annual return: | -7.96% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $4,362.81 | ||||
The above analysis shows the decade-long investment result worked out poorly, with an annualized rate of return of -7.96%. This would have turned a $10K investment made 10 years ago into $4,362.81 today (as of 12/26/2024). On a total return basis, that’s a result of -56.35% (something to think about: how might BIIB shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“All the opportunity in the world means nothing if you don’t actually pull the trigger.” — Sam Zell
