“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: | 10/08/2014 |
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| End date: | 10/07/2019 | ||||
| Start price/share: | $103.12 | ||||
| End price/share: | $115.66 | ||||
| Starting shares: | 96.97 | ||||
| Ending shares: | 96.97 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 12.16% | ||||
| Average annual return: | 2.32% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $11,215.09 | ||||
The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 2.32%. This would have turned a $10K investment made 5 years ago into $11,215.09 today (as of 10/07/2019). On a total return basis, that’s a result of 12.16% (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.]
Another great investment quote to think about:
“Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make.” — Donald Trump
