“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 2019.
| Start date: | 06/14/2019 |
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| End date: | 06/13/2024 | ||||
| Start price/share: | $227.67 | ||||
| End price/share: | $233.84 | ||||
| Starting shares: | 43.92 | ||||
| Ending shares: | 43.92 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2.71% | ||||
| Average annual return: | 0.54% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,273.08 | ||||
As we can see, the five year investment result worked out as follows, with an annualized rate of return of 0.54%. This would have turned a $10K investment made 5 years ago into $10,273.08 today (as of 06/13/2024). On a total return basis, that’s a result of 2.71% (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.]
One more piece of investment wisdom to leave you with:
“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.” — Peter Lynch
