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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 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


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