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

Start date: 02/20/2018


End date: 02/16/2023
Start price/share: $226.57
End price/share: $211.82
Starting shares: 44.14
Ending shares: 44.14
Dividends reinvested/share: $0.00
Total return: -6.51%
Average annual return: -1.34%
Starting investment: $10,000.00
Ending investment: $9,348.75

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -1.34%. This would have turned a $10K investment made 5 years ago into $9,348.75 today (as of 02/16/2023). On a total return basis, that’s a result of -6.51% (something to think about: how might ILMN shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” — Warren Buffett