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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 Adobe Inc (NASD: ADBE)? Today, we examine the outcome of a five year investment into the stock back in 2015.

Start date: 09/17/2015


End date: 09/16/2020
Start price/share: $80.31
End price/share: $476.00
Starting shares: 124.52
Ending shares: 124.52
Dividends reinvested/share: $0.00
Total return: 492.70%
Average annual return: 42.72%
Starting investment: $10,000.00
Ending investment: $59,271.71

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 42.72%. This would have turned a $10K investment made 5 years ago into $59,271.71 today (as of 09/16/2020). On a total return basis, that’s a result of 492.70% (something to think about: how might ADBE 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:
“We ignore outlooks and forecasts… we’re lousy at it and we admit it … everyone else is lousy too, but most people won’t admit it.” — Martin Whitman