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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 Regeneron Pharmaceuticals, Inc. (NASD: REGN)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 11/28/2014


End date: 11/26/2019
Start price/share: $416.11
End price/share: $363.83
Starting shares: 24.03
Ending shares: 24.03
Dividends reinvested/share: $0.00
Total return: -12.56%
Average annual return: -2.65%
Starting investment: $10,000.00
Ending investment: $8,744.03

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -2.65%. This would have turned a $10K investment made 5 years ago into $8,744.03 today (as of 11/26/2019). On a total return basis, that’s a result of -12.56% (something to think about: how might REGN 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:
“Sometimes buying early on the way down looks like being wrong, but it isn’t.” — Seth Klarman