“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 Carmax Inc. (NYSE: KMX)? Today, we examine the outcome of a five year investment into the stock back in 2018.
| Start date: | 06/06/2018 |
|
|||
| End date: | 06/05/2023 | ||||
| Start price/share: | $72.62 | ||||
| End price/share: | $75.26 | ||||
| Starting shares: | 137.70 | ||||
| Ending shares: | 137.70 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3.64% | ||||
| Average annual return: | 0.72% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,365.22 | ||||
The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 0.72%. This would have turned a $10K investment made 5 years ago into $10,365.22 today (as of 06/05/2023). On a total return basis, that’s a result of 3.64% (something to think about: how might KMX shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” — Oscar Wilde
