“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 Edwards Lifesciences Corp (NYSE: EW)? Today, we examine the outcome of a two-decade investment into the stock back in 2003.
| Start date: | 03/03/2003 |
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| End date: | 02/28/2023 | ||||
| Start price/share: | $2.21 | ||||
| End price/share: | $80.44 | ||||
| Starting shares: | 4,524.89 | ||||
| Ending shares: | 4,524.89 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,539.82% | ||||
| Average annual return: | 19.68% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $363,797.01 | ||||
As shown above, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 19.68%. This would have turned a $10K investment made 20 years ago into $363,797.01 today (as of 02/28/2023). On a total return basis, that’s a result of 3,539.82% (something to think about: how might EW shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.” — William Feather
