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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 above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a five year period?

Today, let’s look backwards in time to 2017, and take a look at what happened to investors who asked that very question about United Rentals Inc (NYSE: URI), by taking a look at the investment outcome over a five year holding period.

Start date: 04/24/2017


End date: 04/21/2022
Start price/share: $113.56
End price/share: $337.72
Starting shares: 88.06
Ending shares: 88.06
Dividends reinvested/share: $0.00
Total return: 197.39%
Average annual return: 24.39%
Starting investment: $10,000.00
Ending investment: $29,744.59

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 24.39%. This would have turned a $10K investment made 5 years ago into $29,744.59 today (as of 04/21/2022). On a total return basis, that’s a result of 197.39% (something to think about: how might URI shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” — Phillip Fisher