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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: 08/14/2014
$10,000

08/14/2014
$10,085

08/13/2019
End date: 08/13/2019
Start price/share: $111.55
End price/share: $112.52
Starting shares: 89.65
Ending shares: 89.65
Dividends reinvested/share: $0.00
Total return: 0.87%
Average annual return: 0.17%
Starting investment: $10,000.00
Ending investment: $10,085.29

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 0.17%. This would have turned a $10K investment made 5 years ago into $10,085.29 today (as of 08/13/2019). On a total return basis, that’s a result of 0.87% (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.]

Here’s one more great investment quote before you go:
“Don’t look for the needle in the haystack, just buy the haystack.” — John Bogle