Photo credit:

“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

This inspiring quote from Warren Buffett teaches us the importance of considering our investment time horizon when approaching any given investment: Could we envision ourselves holding the stock we are considering for many years? Even a five year holding period potentially?

For “buy-and-hold” investors taking a long-term view, what’s important isn’t the short-term stock market fluctuations that will inevitably occur, but what happens over the long haul. Looking back 5 years to 2018, investors considering an investment into shares of T-Mobile US Inc (NASD: TMUS) may have been pondering this very question and thinking about their potential investment result over a full five year time horizon. Here’s how that would have worked out.

Start date: 09/11/2018


End date: 09/08/2023
Start price/share: $65.91
End price/share: $137.63
Starting shares: 151.72
Ending shares: 151.72
Dividends reinvested/share: $0.00
Total return: 108.82%
Average annual return: 15.88%
Starting investment: $10,000.00
Ending investment: $20,878.13

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 15.88%. This would have turned a $10K investment made 5 years ago into $20,878.13 today (as of 09/08/2023). On a total return basis, that’s a result of 108.82% (something to think about: how might TMUS shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.” — George Soros