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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 Advanced Micro Devices Inc (NASD: AMD)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 05/14/2014


End date: 05/13/2019
Start price/share: $3.98
End price/share: $26.24
Starting shares: 2,512.56
Ending shares: 2,512.56
Dividends reinvested/share: $0.00
Total return: 559.30%
Average annual return: 45.82%
Starting investment: $10,000.00
Ending investment: $65,930.36

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 45.82%. This would have turned a $10K investment made 5 years ago into $65,930.36 today (as of 05/13/2019). On a total return basis, that’s a result of 559.30% (something to think about: how might AMD shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“There is nothing riskier than the widespread perception that there is no risk.” — Howard Marks