“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 Regeneron Pharmaceuticals, Inc. (NASD: REGN)? Today, we examine the outcome of a five year investment into the stock back in 2014.
| Start date: | 04/01/2014 |
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| End date: | 03/29/2019 | ||||
| Start price/share: | $306.88 | ||||
| End price/share: | $410.62 | ||||
| Starting shares: | 32.59 | ||||
| Ending shares: | 32.59 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 33.80% | ||||
| Average annual return: | 6.00% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,377.98 | ||||
The above analysis shows the five year investment result worked out well, with an annualized rate of return of 6.00%. This would have turned a $10K investment made 5 years ago into $13,377.98 today (as of 03/29/2019). On a total return basis, that’s a result of 33.80% (something to think about: how might REGN shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” — Warren Buffett
