Photo credit:

“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 Chipotle Mexican Grill Inc (NYSE: CMG)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 07/30/2014


End date: 07/29/2019
Start price/share: $681.83
End price/share: $809.03
Starting shares: 14.67
Ending shares: 14.67
Dividends reinvested/share: $0.00
Total return: 18.66%
Average annual return: 3.48%
Starting investment: $10,000.00
Ending investment: $11,865.39

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 3.48%. This would have turned a $10K investment made 5 years ago into $11,865.39 today (as of 07/29/2019). On a total return basis, that’s a result of 18.66% (something to think about: how might CMG 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:
“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.” — Benjamin Graham