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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 CBRE Group Inc (NYSE: CBRE)? Today, we examine the outcome of a five year investment into the stock back in 2016.

Start date: 01/06/2016


End date: 01/05/2021
Start price/share: $32.91
End price/share: $59.42
Starting shares: 303.86
Ending shares: 303.86
Dividends reinvested/share: $0.00
Total return: 80.55%
Average annual return: 12.54%
Starting investment: $10,000.00
Ending investment: $18,058.23

The above analysis shows the five year investment result worked out quite well, with an annualized rate of return of 12.54%. This would have turned a $10K investment made 5 years ago into $18,058.23 today (as of 01/05/2021). On a total return basis, that’s a result of 80.55% (something to think about: how might CBRE 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:
“Sometimes buying early on the way down looks like being wrong, but it isn’t.” — Seth Klarman