“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: | 12/03/2014 |
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| End date: | 12/02/2019 | ||||
| Start price/share: | $651.27 | ||||
| End price/share: | $813.78 | ||||
| Starting shares: | 15.35 | ||||
| Ending shares: | 15.35 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 24.95% | ||||
| Average annual return: | 4.56% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,497.64 | ||||
The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 4.56%. This would have turned a $10K investment made 5 years ago into $12,497.64 today (as of 12/02/2019). On a total return basis, that’s a result of 24.95% (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:
“You can’t be a good value investor without being an independent thinker; you’re seeing valuations that the market is not appreciating. But it’s critical that you understand why the market isn’t seeing the value you do.” — Joel Greenblatt
