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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

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a five year holding period for an investor who was considering Chipotle Mexican Grill Inc (NYSE: CMG) back in 2016, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 10/19/2016


End date: 10/18/2021
Start price/share: $405.25
End price/share: $1,852.67
Starting shares: 24.68
Ending shares: 24.68
Dividends reinvested/share: $0.00
Total return: 357.17%
Average annual return: 35.52%
Starting investment: $10,000.00
Ending investment: $45,710.60

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 35.52%. This would have turned a $10K investment made 5 years ago into $45,710.60 today (as of 10/18/2021). On a total return basis, that’s a result of 357.17% (something to think about: how might CMG shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“We ignore outlooks and forecasts… we’re lousy at it and we admit it … everyone else is lousy too, but most people won’t admit it.” — Martin Whitman