“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 Nektar Therapeutics (NASD: NKTR)? Today, we examine the outcome of a five year investment into the stock back in 2014.
| Start date: | 05/20/2014 |
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| End date: | 05/17/2019 | ||||
| Start price/share: | $10.94 | ||||
| End price/share: | $32.02 | ||||
| Starting shares: | 914.08 | ||||
| Ending shares: | 914.08 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 192.69% | ||||
| Average annual return: | 23.99% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $29,269.92 | ||||
The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 23.99%. This would have turned a $10K investment made 5 years ago into $29,269.92 today (as of 05/17/2019). On a total return basis, that’s a result of 192.69% (something to think about: how might NKTR shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“Based on my own personal experience, both as an investor in recent years and an expert witness in years past, rarely do more than three or four variables really count. Everything else is noise.” — Martin Whitman
