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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 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