Photo credit:

“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 Micron Technology Inc. (NASD: MU)? 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: $14.16
End price/share: $71.92
Starting shares: 706.21
Ending shares: 706.21
Dividends reinvested/share: $0.00
Total return: 407.91%
Average annual return: 38.38%
Starting investment: $10,000.00
Ending investment: $50,787.07

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 38.38%. This would have turned a $10K investment made 5 years ago into $50,787.07 today (as of 12/30/2020). On a total return basis, that’s a result of 407.91% (something to think about: how might MU shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” — Mark Cuban