“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: | 08/31/2015 |
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| End date: | 08/28/2020 | ||||
| Start price/share: | $513.50 | ||||
| End price/share: | $602.61 | ||||
| Starting shares: | 19.47 | ||||
| Ending shares: | 19.47 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 17.35% | ||||
| Average annual return: | 3.25% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $11,733.09 | ||||
As shown above, the five year investment result worked out as follows, with an annualized rate of return of 3.25%. This would have turned a $10K investment made 5 years ago into $11,733.09 today (as of 08/28/2020). On a total return basis, that’s a result of 17.35% (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.]
One more piece of investment wisdom to leave you with:
“Investing is the intersection of economics and psychology.” — Seth Klarman
