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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 T-Mobile US Inc (NASD: TMUS)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 04/26/2018
$10,000

04/26/2018
  $23,091

04/25/2023
End date: 04/25/2023
Start price/share: $64.10
End price/share: $148.00
Starting shares: 156.01
Ending shares: 156.01
Dividends reinvested/share: $0.00
Total return: 130.89%
Average annual return: 18.22%
Starting investment: $10,000.00
Ending investment: $23,091.64

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 18.22%. This would have turned a $10K investment made 5 years ago into $23,091.64 today (as of 04/25/2023). On a total return basis, that’s a result of 130.89% (something to think about: how might TMUS shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“I made my money by selling too soon.” — Bernard Baruch