“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 2004.
| Start date: | 11/15/2004 |
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| End date: | 11/13/2024 | ||||
| Start price/share: | $34.60 | ||||
| End price/share: | $88.77 | ||||
| Starting shares: | 289.02 | ||||
| Ending shares: | 289.02 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 156.56% | ||||
| Average annual return: | 4.82% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $25,647.86 | ||||
As we can see, the two-decade investment result worked out as follows, with an annualized rate of return of 4.82%. This would have turned a $10K investment made 20 years ago into $25,647.86 today (as of 11/13/2024). On a total return basis, that’s a result of 156.56% (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.]
More investment wisdom to ponder:
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” — Warren Buffett
