“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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a five year investment into the stock back in 2018.
| Start date: | 05/14/2018 |
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| End date: | 05/11/2023 | ||||
| Start price/share: | $67.22 | ||||
| End price/share: | $64.17 | ||||
| Starting shares: | 148.77 | ||||
| Ending shares: | 148.77 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -4.54% | ||||
| Average annual return: | -0.93% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $9,544.06 | ||||
As shown above, the five year investment result worked out poorly, with an annualized rate of return of -0.93%. This would have turned a $10K investment made 5 years ago into $9,544.06 today (as of 05/11/2023). On a total return basis, that’s a result of -4.54% (something to think about: how might INCY shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.” — Warren Buffett
