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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: 07/12/2016


End date: 07/09/2021
Start price/share: $44.93
End price/share: $656.95
Starting shares: 222.57
Ending shares: 222.57
Dividends reinvested/share: $0.00
Total return: 1,362.16%
Average annual return: 71.10%
Starting investment: $10,000.00
Ending investment: $146,208.28

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 71.10%. This would have turned a $10K investment made 5 years ago into $146,208.28 today (as of 07/09/2021). On a total return basis, that’s a result of 1,362.16% (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.]

One more piece of investment wisdom to leave you with:
“All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.” — Peter Lynch