“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 twenty 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 twenty year investment into the stock back in 2004.
| Start date: | 12/10/2004 |
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| End date: | 12/09/2024 | ||||
| Start price/share: | $65.53 | ||||
| End price/share: | $156.46 | ||||
| Starting shares: | 152.60 | ||||
| Ending shares: | 152.60 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 138.76% | ||||
| Average annual return: | 4.45% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $23,898.80 | ||||
The above analysis shows the twenty year investment result worked out as follows, with an annualized rate of return of 4.45%. This would have turned a $10K investment made 20 years ago into $23,898.80 today (as of 12/09/2024). On a total return basis, that’s a result of 138.76% (something to think about: how might BIIB shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money.” — Ray Dalio
