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

Start date: 04/29/2015


End date: 04/28/2020
Start price/share: $469.70
End price/share: $528.61
Starting shares: 21.29
Ending shares: 21.29
Dividends reinvested/share: $0.00
Total return: 12.54%
Average annual return: 2.39%
Starting investment: $10,000.00
Ending investment: $11,254.23

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 2.39%. This would have turned a $10K investment made 5 years ago into $11,254.23 today (as of 04/28/2020). On a total return basis, that’s a result of 12.54% (something to think about: how might REGN shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“In the long run, we are all dead.” — John Maynard Keynes