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 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


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