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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 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


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