“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 Illumina Inc (NASD: ILMN)? Today, we examine the outcome of a five year investment into the stock back in 2014.
| Start date: | 08/01/2014 |
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| End date: | 07/31/2019 | ||||
| Start price/share: | $160.87 | ||||
| End price/share: | $299.38 | ||||
| Starting shares: | 62.16 | ||||
| Ending shares: | 62.16 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 86.10% | ||||
| Average annual return: | 13.23% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $18,612.62 | ||||
As shown above, the five year investment result worked out quite well, with an annualized rate of return of 13.23%. This would have turned a $10K investment made 5 years ago into $18,612.62 today (as of 07/31/2019). On a total return basis, that’s a result of 86.10% (something to think about: how might ILMN 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:
“To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.” — Benjamin Graham
