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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 Trimble Inc (NASD: TRMB), by taking a look at the investment outcome over a five year holding period.

Start date: 09/14/2017


End date: 09/13/2022
Start price/share: $39.79
End price/share: $61.68
Starting shares: 251.32
Ending shares: 251.32
Dividends reinvested/share: $0.00
Total return: 55.01%
Average annual return: 9.16%
Starting investment: $10,000.00
Ending investment: $15,499.50

As shown above, the five year investment result worked out well, with an annualized rate of return of 9.16%. This would have turned a $10K investment made 5 years ago into $15,499.50 today (as of 09/13/2022). On a total return basis, that’s a result of 55.01% (something to think about: how might TRMB shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“Ensure management’s interests are aligned with shareholders.” — Sam Zell