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

Start date: 11/12/2014
$10,000

11/12/2014
$11,808

11/11/2019
End date: 11/11/2019
Start price/share: $71.87
End price/share: $84.86
Starting shares: 139.14
Ending shares: 139.14
Dividends reinvested/share: $0.00
Total return: 18.07%
Average annual return: 3.38%
Starting investment: $10,000.00
Ending investment: $11,808.17

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 3.38%. This would have turned a $10K investment made 5 years ago into $11,808.17 today (as of 11/11/2019). On a total return basis, that’s a result of 18.07% (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.]

Here’s one more great investment quote before you go:
“Smart investing doesn’t consist of buying good assets but of buying assets well. This is a very, very important distinction that very, very few people understand.” — Howard Marks