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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 United Rentals Inc (NYSE: URI)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 06/18/2014
$10,000

06/18/2014
$11,581

06/17/2019
End date: 06/17/2019
Start price/share: $104.77
End price/share: $121.34
Starting shares: 95.45
Ending shares: 95.45
Dividends reinvested/share: $0.00
Total return: 15.82%
Average annual return: 2.98%
Starting investment: $10,000.00
Ending investment: $11,581.49

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 2.98%. This would have turned a $10K investment made 5 years ago into $11,581.49 today (as of 06/17/2019). On a total return basis, that’s a result of 15.82% (something to think about: how might URI 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:
“The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you’re wrong.” — William O’Neil