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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 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