“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 |
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| 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
