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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 United Rentals Inc (NYSE: URI)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 05/15/2014


End date: 05/14/2019
Start price/share: $94.44
End price/share: $127.09
Starting shares: 105.89
Ending shares: 105.89
Dividends reinvested/share: $0.00
Total return: 34.57%
Average annual return: 6.12%
Starting investment: $10,000.00
Ending investment: $13,458.18

As shown above, the five year investment result worked out well, with an annualized rate of return of 6.12%. This would have turned a $10K investment made 5 years ago into $13,458.18 today (as of 05/14/2019). On a total return basis, that’s a result of 34.57% (something to think about: how might URI 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:
“Spend each day trying to be a little wiser than you were when you woke up.” — Charlie Munger