“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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a five year investment into the stock back in 2017.
| Start date: | 06/28/2017 |
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| End date: | 06/27/2022 | ||||
| Start price/share: | $134.33 | ||||
| End price/share: | $77.36 | ||||
| Starting shares: | 74.44 | ||||
| Ending shares: | 74.44 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -42.41% | ||||
| Average annual return: | -10.45% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $5,758.75 | ||||
As we can see, the five year investment result worked out poorly, with an annualized rate of return of -10.45%. This would have turned a $10K investment made 5 years ago into $5,758.75 today (as of 06/27/2022). On a total return basis, that’s a result of -42.41% (something to think about: how might INCY shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“It’s not how much money you make, but how much money you keep.” — Robert Kiyosaki
