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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 Alexion Pharmaceuticals Inc. (NASD: ALXN)? Today, we examine the outcome of a five year investment into the stock back in 2016.

Start date: 05/12/2016


End date: 05/11/2021
Start price/share: $139.11
End price/share: $171.41
Starting shares: 71.89
Ending shares: 71.89
Dividends reinvested/share: $0.00
Total return: 23.22%
Average annual return: 4.26%
Starting investment: $10,000.00
Ending investment: $12,319.37

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 4.26%. This would have turned a $10K investment made 5 years ago into $12,319.37 today (as of 05/11/2021). On a total return basis, that’s a result of 23.22% (something to think about: how might ALXN 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:
“The idea that a bell rings to signal when to get into or out of the stock market is simply not credible. After nearly fifty years in this business, I don’t know anybody who has done it successfully and consistently.” — Jack Bogle