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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 Regeneron Pharmaceuticals, Inc. (NASD: REGN)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 07/24/2014
$10,000

07/24/2014
$10,155

07/23/2019
End date: 07/23/2019
Start price/share: $304.44
End price/share: $309.26
Starting shares: 32.85
Ending shares: 32.85
Dividends reinvested/share: $0.00
Total return: 1.58%
Average annual return: 0.31%
Starting investment: $10,000.00
Ending investment: $10,155.96

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 0.31%. This would have turned a $10K investment made 5 years ago into $10,155.96 today (as of 07/23/2019). On a total return basis, that’s a result of 1.58% (something to think about: how might REGN 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:
“I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.” — Charlie Munger