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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 Illumina Inc (NASD: ILMN)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 07/09/2018


End date: 07/06/2023
Start price/share: $288.76
End price/share: $182.48
Starting shares: 34.63
Ending shares: 34.63
Dividends reinvested/share: $0.00
Total return: -36.81%
Average annual return: -8.78%
Starting investment: $10,000.00
Ending investment: $6,319.30

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -8.78%. This would have turned a $10K investment made 5 years ago into $6,319.30 today (as of 07/06/2023). On a total return basis, that’s a result of -36.81% (something to think about: how might ILMN shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” — Warren Buffett