“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 LKQ Corp (NASD: LKQ)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 12/24/2015 |
|
|||
| End date: | 12/23/2020 | ||||
| Start price/share: | $29.49 | ||||
| End price/share: | $36.25 | ||||
| Starting shares: | 339.10 | ||||
| Ending shares: | 339.10 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 22.92% | ||||
| Average annual return: | 4.21% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,291.25 | ||||
As we can see, the five year investment result worked out as follows, with an annualized rate of return of 4.21%. This would have turned a $10K investment made 5 years ago into $12,291.25 today (as of 12/23/2020). On a total return basis, that’s a result of 22.92% (something to think about: how might LKQ 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:
“Every once in a while, the market does something so stupid it takes your breath away.” — Jim Cramer
