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

Start date: 10/21/2015


End date: 10/20/2020
Start price/share: $79.61
End price/share: $392.43
Starting shares: 125.61
Ending shares: 125.61
Dividends reinvested/share: $0.00
Total return: 392.94%
Average annual return: 37.56%
Starting investment: $10,000.00
Ending investment: $49,299.24

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 37.56%. This would have turned a $10K investment made 5 years ago into $49,299.24 today (as of 10/20/2020). On a total return basis, that’s a result of 392.94% (something to think about: how might DXCM 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:
“Smart investing doesn’t consist of buying good assets but of buying assets well. This is a very, very important distinction that very, very few people understand.” — Howard Marks