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

Start date: 05/03/2016


End date: 04/30/2021
Start price/share: $74.90
End price/share: $230.32
Starting shares: 133.51
Ending shares: 133.51
Dividends reinvested/share: $0.00
Total return: 207.50%
Average annual return: 25.22%
Starting investment: $10,000.00
Ending investment: $30,749.16

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 25.22%. This would have turned a $10K investment made 5 years ago into $30,749.16 today (as of 04/30/2021). On a total return basis, that’s a result of 207.50% (something to think about: how might CRM shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” — Charlie Munger