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

Start date: 09/08/2014
$10,000

09/08/2014
$12,352

09/05/2019
End date: 09/05/2019
Start price/share: $678.37
End price/share: $838.11
Starting shares: 14.74
Ending shares: 14.74
Dividends reinvested/share: $0.00
Total return: 23.55%
Average annual return: 4.32%
Starting investment: $10,000.00
Ending investment: $12,352.00

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 4.32%. This would have turned a $10K investment made 5 years ago into $12,352.00 today (as of 09/05/2019). On a total return basis, that’s a result of 23.55% (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 investment quote to leave you with:
“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.” — Peter Lynch