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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 Celgene Corp (NASD: CELG)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 06/19/2014
$10,000

06/19/2014
$11,542

06/18/2019
End date: 06/18/2019
Start price/share: $84.16
End price/share: $97.15
Starting shares: 118.82
Ending shares: 118.82
Dividends reinvested/share: $0.00
Total return: 15.43%
Average annual return: 2.91%
Starting investment: $10,000.00
Ending investment: $11,542.18

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 2.91%. This would have turned a $10K investment made 5 years ago into $11,542.18 today (as of 06/18/2019). On a total return basis, that’s a result of 15.43% (something to think about: how might CELG shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“The right time for a company to finance its growth is not when it needs capital, but rather when the market is most receptive to providing capital.” — Michael Milken