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

Start date: 07/07/2015


End date: 07/06/2020
Start price/share: $109.32
End price/share: $107.79
Starting shares: 91.47
Ending shares: 91.47
Dividends reinvested/share: $0.00
Total return: -1.40%
Average annual return: -0.28%
Starting investment: $10,000.00
Ending investment: $9,860.71

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -0.28%. This would have turned a $10K investment made 5 years ago into $9,860.71 today (as of 07/06/2020). On a total return basis, that’s a result of -1.40% (something to think about: how might INCY 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:
“The four most dangerous words in investing are: ‘this time it’s different.'” — Sir John Templeton