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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 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


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