“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 LKQ Corp (NASD: LKQ)? Today, we examine the outcome of a five year investment into the stock back in 2014.
| Start date: | 06/12/2014 |
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| End date: | 06/11/2019 | ||||
| Start price/share: | $26.34 | ||||
| End price/share: | $26.73 | ||||
| Starting shares: | 379.65 | ||||
| Ending shares: | 379.65 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1.48% | ||||
| Average annual return: | 0.29% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,145.84 | ||||
As shown above, the five year investment result worked out as follows, with an annualized rate of return of 0.29%. This would have turned a $10K investment made 5 years ago into $10,145.84 today (as of 06/11/2019). On a total return basis, that’s a result of 1.48% (something to think about: how might LKQ 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 emotional burden of trading is substantial; on any given day, I could lose millions of dollars. If you personalize these losses, you can’t trade.” — Bruce Kovner
