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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 Adobe Inc (NASD: ADBE)? Today, we examine the outcome of a five year investment into the stock back in 2015.

Start date: 03/11/2015
$10,000

03/11/2015
$43,725

03/10/2020
End date: 03/10/2020
Start price/share: $76.01
End price/share: $332.38
Starting shares: 131.56
Ending shares: 131.56
Dividends reinvested/share: $0.00
Total return: 337.28%
Average annual return: 34.30%
Starting investment: $10,000.00
Ending investment: $43,725.11

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 34.30%. This would have turned a $10K investment made 5 years ago into $43,725.11 today (as of 03/10/2020). On a total return basis, that’s a result of 337.28% (something to think about: how might ADBE shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“Every once in a while, the market does something so stupid it takes your breath away.” — Jim Cramer