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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 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