“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 Illumina Inc (NASD: ILMN)? Today, we examine the outcome of a five year investment into the stock back in 2016.
| Start date: | 07/27/2016 |
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| End date: | 07/26/2021 | ||||
| Start price/share: | $162.25 | ||||
| End price/share: | $491.51 | ||||
| Starting shares: | 61.63 | ||||
| Ending shares: | 61.63 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 202.93% | ||||
| Average annual return: | 24.82% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $30,298.48 | ||||
As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 24.82%. This would have turned a $10K investment made 5 years ago into $30,298.48 today (as of 07/26/2021). On a total return basis, that’s a result of 202.93% (something to think about: how might ILMN shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Our job is to find a few intelligent things to do, not to keep up with every damn thing in the world.” — Charlie Munger
