“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 Tesla Inc (NASD: TSLA)? Today, we examine the outcome of a five year investment into the stock back in 2017.
| Start date: | 05/30/2017 |
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| End date: | 05/26/2022 | ||||
| Start price/share: | $67.02 | ||||
| End price/share: | $707.73 | ||||
| Starting shares: | 149.21 | ||||
| Ending shares: | 149.21 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 956.00% | ||||
| Average annual return: | 60.35% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $105,598.88 | ||||
As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 60.35%. This would have turned a $10K investment made 5 years ago into $105,598.88 today (as of 05/26/2022). On a total return basis, that’s a result of 956.00% (something to think about: how might TSLA 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:
“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” — Oscar Wilde
