Photo credit: commons.wikimedia.org

“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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a five year investment into the stock back in 2014.

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

10/07/2014
$16,009

10/04/2019
End date: 10/04/2019
Start price/share: $46.76
End price/share: $74.87
Starting shares: 213.86
Ending shares: 213.86
Dividends reinvested/share: $0.00
Total return: 60.12%
Average annual return: 9.88%
Starting investment: $10,000.00
Ending investment: $16,009.18

The above analysis shows the five year investment result worked out well, with an annualized rate of return of 9.88%. This would have turned a $10K investment made 5 years ago into $16,009.18 today (as of 10/04/2019). On a total return basis, that’s a result of 60.12% (something to think about: how might INCY 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:
“It’s not how much money you make, but how much money you keep.” — Robert Kiyosaki