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

Start date: 05/27/2016


End date: 05/26/2021
Start price/share: $44.61
End price/share: $619.13
Starting shares: 224.16
Ending shares: 224.16
Dividends reinvested/share: $0.00
Total return: 1,287.87%
Average annual return: 69.23%
Starting investment: $10,000.00
Ending investment: $138,799.14

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 69.23%. This would have turned a $10K investment made 5 years ago into $138,799.14 today (as of 05/26/2021). On a total return basis, that’s a result of 1,287.87% (something to think about: how might TSLA 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:
“He who earns and does not invest will have to work for the rest of his life.” — Debasish Mridha