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

Start date: 09/06/2016


End date: 09/02/2021
Start price/share: $17.01
End price/share: $73.99
Starting shares: 587.89
Ending shares: 587.89
Dividends reinvested/share: $0.00
Total return: 334.98%
Average annual return: 34.25%
Starting investment: $10,000.00
Ending investment: $43,503.09

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 34.25%. This would have turned a $10K investment made 5 years ago into $43,503.09 today (as of 09/02/2021). On a total return basis, that’s a result of 334.98% (something to think about: how might MU 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:
“Successful investing is anticipating the anticipations of others.” — John Maynard Keynes