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“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 Chipotle Mexican Grill Inc (NYSE: CMG)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 03/31/2014
$10,000

03/31/2014
$12,369

03/28/2019
End date: 03/28/2019
Start price/share: $568.05
End price/share: $702.51
Starting shares: 17.60
Ending shares: 17.60
Dividends reinvested/share: $0.00
Total return: 23.67%
Average annual return: 4.35%
Starting investment: $10,000.00
Ending investment: $12,369.75

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 4.35%. This would have turned a $10K investment made 5 years ago into $12,369.75 today (as of 03/28/2019). On a total return basis, that’s a result of 23.67% (something to think about: how might CMG shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” — Seth Klarman