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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

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a five year holding period for an investor who was considering FISV (: FISV) back in 2018, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 06/13/2018
$10,000

06/13/2018
  $15,057

06/06/2023
End date: 06/06/2023
Start price/share: $75.85
End price/share: $114.23
Starting shares: 131.84
Ending shares: 131.84
Dividends reinvested/share: $0.00
Total return: 50.60%
Average annual return: 8.56%
Starting investment: $10,000.00
Ending investment: $15,057.84

As shown above, the five year investment result worked out well, with an annualized rate of return of 8.56%. This would have turned a $10K investment made 5 years ago into $15,057.84 today (as of 06/06/2023). On a total return basis, that’s a result of 50.60% (something to think about: how might FISV 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 idea that a bell rings to signal when to get into or out of the stock market is simply not credible. After nearly fifty years in this business, I don’t know anybody who has done it successfully and consistently.” — Jack Bogle