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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 Cerner Corp. (NASD: CERN)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 04/04/2014
$10,000

04/04/2014
$10,640

04/03/2019
End date: 04/03/2019
Start price/share: $53.67
End price/share: $57.12
Starting shares: 186.32
Ending shares: 186.32
Dividends reinvested/share: $0.00
Total return: 6.43%
Average annual return: 1.25%
Starting investment: $10,000.00
Ending investment: $10,640.82

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 1.25%. This would have turned a $10K investment made 5 years ago into $10,640.82 today (as of 04/03/2019). On a total return basis, that’s a result of 6.43% (something to think about: how might CERN shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.” — Peter Lynch