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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— 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 1999.

Start date: 06/10/1999
$10,000

06/10/1999
$20,329

06/07/2019
End date: 06/07/2019
Start price/share: $20.31
End price/share: $41.28
Starting shares: 492.37
Ending shares: 492.37
Dividends reinvested/share: $0.00
Total return: 103.25%
Average annual return: 3.61%
Starting investment: $10,000.00
Ending investment: $20,329.09

As we can see, the two-decade investment result worked out as follows, with an annualized rate of return of 3.61%. This would have turned a $10K investment made 20 years ago into $20,329.09 today (as of 06/07/2019). On a total return basis, that’s a result of 103.25% (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.]

One more investment quote to leave you with:
“I made my money by selling too soon.” — Bernard Baruch