“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year 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 five year investment into the stock back in 2018.
| Start date: | 08/15/2018 |
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| End date: | 08/14/2023 | ||||
| Start price/share: | $340.72 | ||||
| End price/share: | $272.74 | ||||
| Starting shares: | 29.35 | ||||
| Ending shares: | 29.35 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -19.95% | ||||
| Average annual return: | -4.35% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $8,006.17 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -4.35%. This would have turned a $10K investment made 5 years ago into $8,006.17 today (as of 08/14/2023). On a total return basis, that’s a result of -19.95% (something to think about: how might BIIB shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“If I’ve learned one thing in this life it’s this: even if you lose, don’t lose the lesson.” — Daymond John
