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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 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 Adobe Inc (NASD: ADBE)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 01/04/2018


End date: 01/03/2023
Start price/share: $183.22
End price/share: $336.92
Starting shares: 54.58
Ending shares: 54.58
Dividends reinvested/share: $0.00
Total return: 83.89%
Average annual return: 12.96%
Starting investment: $10,000.00
Ending investment: $18,391.77

As we can see, the five year investment result worked out quite well, with an annualized rate of return of 12.96%. This would have turned a $10K investment made 5 years ago into $18,391.77 today (as of 01/03/2023). On a total return basis, that’s a result of 83.89% (something to think about: how might ADBE 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:
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” — Warren Buffett