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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 Henry Schein Inc (NASD: HSIC)? Today, we examine the outcome of a five year investment into the stock back in 2016.

Start date: 03/31/2016


End date: 03/30/2021
Start price/share: $67.70
End price/share: $68.97
Starting shares: 147.71
Ending shares: 147.71
Dividends reinvested/share: $0.00
Total return: 1.88%
Average annual return: 0.37%
Starting investment: $10,000.00
Ending investment: $10,186.37

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 0.37%. This would have turned a $10K investment made 5 years ago into $10,186.37 today (as of 03/30/2021). On a total return basis, that’s a result of 1.88% (something to think about: how might HSIC shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” — Seth Klarman