“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 ABIOMED, Inc. (NASD: ABMD)? Today, we examine the outcome of a two-decade investment into the stock back in 1999.
| Start date: | 11/01/1999 |
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| End date: | 10/30/2019 | ||||
| Start price/share: | $10.25 | ||||
| End price/share: | $181.77 | ||||
| Starting shares: | 975.61 | ||||
| Ending shares: | 975.61 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,673.37% | ||||
| Average annual return: | 15.46% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $177,407.98 | ||||
The above analysis shows the two-decade investment result worked out exceptionally well, with an annualized rate of return of 15.46%. This would have turned a $10K investment made 20 years ago into $177,407.98 today (as of 10/30/2019). On a total return basis, that’s a result of 1,673.37% (something to think about: how might ABMD shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” — Warren Buffett
