“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 Hologic Inc (NASD: HOLX)? Today, we examine the outcome of a five year investment into the stock back in 2016.
| Start date: | 11/08/2016 |
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| End date: | 11/05/2021 | ||||
| Start price/share: | $38.77 | ||||
| End price/share: | $68.97 | ||||
| Starting shares: | 257.93 | ||||
| Ending shares: | 257.93 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 77.90% | ||||
| Average annual return: | 12.23% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $17,788.24 | ||||
As shown above, the five year investment result worked out quite well, with an annualized rate of return of 12.23%. This would have turned a $10K investment made 5 years ago into $17,788.24 today (as of 11/05/2021). On a total return basis, that’s a result of 77.90% (something to think about: how might HOLX shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.” — George Soros
