“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 Amazon.com Inc (NASD: AMZN)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 11/30/2015 |
|
|||
| End date: | 11/27/2020 | ||||
| Start price/share: | $664.80 | ||||
| End price/share: | $3,195.34 | ||||
| Starting shares: | 15.04 | ||||
| Ending shares: | 15.04 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 380.65% | ||||
| Average annual return: | 36.91% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $48,062.02 | ||||
The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 36.91%. This would have turned a $10K investment made 5 years ago into $48,062.02 today (as of 11/27/2020). On a total return basis, that’s a result of 380.65% (something to think about: how might AMZN 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 most important three words in investing is: “I don’t know.†If someone doesn’t say that to you then they are lying.” — James Altucher
