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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 DaVita Inc (NYSE: DVA)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 04/03/2018
$10,000

04/03/2018
  $12,602

03/31/2023
End date: 03/31/2023
Start price/share: $64.35
End price/share: $81.11
Starting shares: 155.40
Ending shares: 155.40
Dividends reinvested/share: $0.00
Total return: 26.05%
Average annual return: 4.74%
Starting investment: $10,000.00
Ending investment: $12,602.38

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 4.74%. This would have turned a $10K investment made 5 years ago into $12,602.38 today (as of 03/31/2023). On a total return basis, that’s a result of 26.05% (something to think about: how might DVA shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“Only when the tide goes out do you discover who’s been swimming naked.” — Warren Buffett