That 2014 $10k Investment In TTWO Really Worked

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— Warren Buffett

Such a great quote from Warren Buffett, highlighting the importance of investment time horizon when considering making an investment. In the short run, who knows what the stock market will do? A week or two after buying any given stock, could the entire stock market fall out of bed? Quite possibly! Should that happen, how would you react? It is an excellent question to think about before hitting the buy button.

For investors who take a multi-year time horizon, the important thing is not what happens in the next week or two, but what the result will be over the long haul. Today, we look at the result investors of the year 2014 experienced, who considered an investment in shares of Take-Two Interactive Software, Inc. (NASD: TTWO) and decided upon a five year investment time horizon.

TTWO 5-Year Return Details
Start date:	05/01/2014	$10,000 05/01/2014 $46,800 04/30/2019
End date:	04/30/2019
Start price/share:	$20.69
End price/share:	$96.83
Starting shares:	483.33
Ending shares:	483.33
Dividends reinvested/share:	$0.00
Total return:	368.00%
Average annual return:	36.16%
Starting investment:	$10,000.00
Ending investment:	$46,800.20

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 36.16%. This would have turned a $10K investment made 5 years ago into $46,800.20 today (as of 04/30/2019). On a total return basis, that’s a result of 368.00% (something to think about: how might TTWO 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:
“Value investing means really asking what are the best values, and not assuming that because something looks expensive that it is, or assuming that because a stock is down in price and trades at low multiples that it is a bargain.” — Bill Miller