“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 Hologic Inc (NASD: HOLX)? Today, we examine the outcome of a two-decade investment into the stock back in 2004.
| Start date: | 11/22/2004 |
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| End date: | 11/20/2024 | ||||
| Start price/share: | $6.12 | ||||
| End price/share: | $78.04 | ||||
| Starting shares: | 1,633.99 | ||||
| Ending shares: | 1,633.99 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,175.16% | ||||
| Average annual return: | 13.57% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $127,563.59 | ||||
As shown above, the two-decade investment result worked out quite well, with an annualized rate of return of 13.57%. This would have turned a $10K investment made 20 years ago into $127,563.59 today (as of 11/20/2024). On a total return basis, that’s a result of 1,175.16% (something to think about: how might HOLX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“When you sell in desperation, you always sell cheap.” — Peter Lynch
