“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 Zebra Technologies Corp. (NASD: ZBRA)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 07/22/2015 |
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| End date: | 07/21/2020 | ||||
| Start price/share: | $113.71 | ||||
| End price/share: | $273.28 | ||||
| Starting shares: | 87.94 | ||||
| Ending shares: | 87.94 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 140.33% | ||||
| Average annual return: | 19.16% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $24,035.94 | ||||
As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 19.16%. This would have turned a $10K investment made 5 years ago into $24,035.94 today (as of 07/21/2020). On a total return basis, that’s a result of 140.33% (something to think about: how might ZBRA shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“The older I get, the more I see a straight path where I want to go. If you’re going to hunt elephants, don’t get off the trail for a rabbit.” — T. Boone Pickens
