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

Start date: 05/22/2014


End date: 05/21/2019
Start price/share: $68.16
End price/share: $49.60
Starting shares: 146.71
Ending shares: 146.71
Dividends reinvested/share: $0.00
Total return: -27.23%
Average annual return: -6.16%
Starting investment: $10,000.00
Ending investment: $7,276.79

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -6.16%. This would have turned a $10K investment made 5 years ago into $7,276.79 today (as of 05/21/2019). On a total return basis, that’s a result of -27.23% (something to think about: how might DVA 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:
“The person who starts simply with the idea of getting rich won’t succeed; you must have a larger ambition.” — John Rockefeller