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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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a five year investment into the stock back in 2015.

Start date: 12/31/2015


End date: 12/30/2020
Start price/share: $108.45
End price/share: $86.86
Starting shares: 92.21
Ending shares: 92.21
Dividends reinvested/share: $0.00
Total return: -19.91%
Average annual return: -4.34%
Starting investment: $10,000.00
Ending investment: $8,009.38

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -4.34%. This would have turned a $10K investment made 5 years ago into $8,009.38 today (as of 12/30/2020). On a total return basis, that’s a result of -19.91% (something to think about: how might INCY shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.” — George Soros