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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 above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a five year period?

Today, let’s look backwards in time to 2018, and take a look at what happened to investors who asked that very question about Edwards Lifesciences Corp (NYSE: EW), by taking a look at the investment outcome over a five year holding period.

Start date: 08/21/2018


End date: 08/18/2023
Start price/share: $46.80
End price/share: $76.58
Starting shares: 213.68
Ending shares: 213.68
Dividends reinvested/share: $0.00
Total return: 63.63%
Average annual return: 10.36%
Starting investment: $10,000.00
Ending investment: $16,361.53

The above analysis shows the five year investment result worked out quite well, with an annualized rate of return of 10.36%. This would have turned a $10K investment made 5 years ago into $16,361.53 today (as of 08/18/2023). On a total return basis, that’s a result of 63.63% (something to think about: how might EW 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:
“You make most of your money in a bear market, you just don’t realize it at the time.” — Shelby Davis