“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 Waters Corp. (NYSE: WAT)? Today, we examine the outcome of a five year investment into the stock back in 2018.
| Start date: | 03/13/2018 |
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| End date: | 03/10/2023 | ||||
| Start price/share: | $212.13 | ||||
| End price/share: | $304.96 | ||||
| Starting shares: | 47.14 | ||||
| Ending shares: | 47.14 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 43.76% | ||||
| Average annual return: | 7.54% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $14,377.29 | ||||
As we can see, the five year investment result worked out well, with an annualized rate of return of 7.54%. This would have turned a $10K investment made 5 years ago into $14,377.29 today (as of 03/10/2023). On a total return basis, that’s a result of 43.76% (something to think about: how might WAT shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Investing is the intersection of economics and psychology.” — Seth Klarman
