“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 Salesforce.com Inc (NYSE: CRM)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 04/23/2015 |
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| End date: | 04/22/2020 | ||||
| Start price/share: | $68.47 | ||||
| End price/share: | $154.14 | ||||
| Starting shares: | 146.05 | ||||
| Ending shares: | 146.05 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 125.12% | ||||
| Average annual return: | 17.61% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $22,512.01 | ||||
As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 17.61%. This would have turned a $10K investment made 5 years ago into $22,512.01 today (as of 04/22/2020). On a total return basis, that’s a result of 125.12% (something to think about: how might CRM shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“A 10% decline in the market is fairly common, it happens about once a year. Investors who realize this are less likely to sell in a panic, and more likely to remain invested, benefitting from the wealthbuilding power of stocks.” — Christopher Davis
