“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 T-Mobile US Inc (NASD: TMUS)? Today, we examine the outcome of a five year investment into the stock back in 2016.
| Start date: | 08/11/2016 |
|
|||
| End date: | 08/10/2021 | ||||
| Start price/share: | $46.83 | ||||
| End price/share: | $143.20 | ||||
| Starting shares: | 213.54 | ||||
| Ending shares: | 213.54 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 205.79% | ||||
| Average annual return: | 25.05% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $30,578.66 | ||||
As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 25.05%. This would have turned a $10K investment made 5 years ago into $30,578.66 today (as of 08/10/2021). On a total return basis, that’s a result of 205.79% (something to think about: how might TMUS 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:
“Those who do not remember the past are condemned to repeat it.” — George Santayana
