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

Start date: 04/27/2015


End date: 04/24/2020
Start price/share: $438.56
End price/share: $2,410.22
Starting shares: 22.80
Ending shares: 22.80
Dividends reinvested/share: $0.00
Total return: 449.58%
Average annual return: 40.63%
Starting investment: $10,000.00
Ending investment: $54,952.09

As we can see, the five year investment result worked out exceptionally well, with an annualized rate of return of 40.63%. This would have turned a $10K investment made 5 years ago into $54,952.09 today (as of 04/24/2020). On a total return basis, that’s a result of 449.58% (something to think about: how might AMZN 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:
“I made my money by selling too soon.” — Bernard Baruch