Photo credit:

“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


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