“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 Henry Schein Inc (NASD: HSIC)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 05/01/2015 |
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| End date: | 04/30/2020 | ||||
| Start price/share: | $54.45 | ||||
| End price/share: | $54.56 | ||||
| Starting shares: | 183.65 | ||||
| Ending shares: | 183.65 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 0.20% | ||||
| Average annual return: | 0.04% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,020.03 | ||||
As we can see, the five year investment result worked out as follows, with an annualized rate of return of 0.04%. This would have turned a $10K investment made 5 years ago into $10,020.03 today (as of 04/30/2020). On a total return basis, that’s a result of 0.20% (something to think about: how might HSIC shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.” — Benjamin Graham
