Photo credit:

“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 Advanced Micro Devices Inc (NASD: AMD)? Today, we examine the outcome of a five year investment into the stock back in 2015.

Start date: 05/22/2015


End date: 05/21/2020
Start price/share: $2.28
End price/share: $54.65
Starting shares: 4,385.96
Ending shares: 4,385.96
Dividends reinvested/share: $0.00
Total return: 2,296.93%
Average annual return: 88.70%
Starting investment: $10,000.00
Ending investment: $239,670.75

As we can see, the five year investment result worked out exceptionally well, with an annualized rate of return of 88.70%. This would have turned a $10K investment made 5 years ago into $239,670.75 today (as of 05/21/2020). On a total return basis, that’s a result of 2,296.93% (something to think about: how might AMD shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“Ensure management’s interests are aligned with shareholders.” — Sam Zell