“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 Catalent Inc (NYSE: CTLT)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 09/30/2015 |
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| End date: | 09/29/2020 | ||||
| Start price/share: | $24.30 | ||||
| End price/share: | $85.19 | ||||
| Starting shares: | 411.52 | ||||
| Ending shares: | 411.52 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 250.58% | ||||
| Average annual return: | 28.50% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $35,060.17 | ||||
The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 28.50%. This would have turned a $10K investment made 5 years ago into $35,060.17 today (as of 09/29/2020). On a total return basis, that’s a result of 250.58% (something to think about: how might CTLT shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“The stock market is a device to transfer money from the impatient to the patient.” — Warren Buffett
