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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 DaVita Inc (NYSE: DVA)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 10/26/2018


End date: 10/25/2023
Start price/share: $65.08
End price/share: $78.60
Starting shares: 153.66
Ending shares: 153.66
Dividends reinvested/share: $0.00
Total return: 20.77%
Average annual return: 3.85%
Starting investment: $10,000.00
Ending investment: $12,079.04

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 3.85%. This would have turned a $10K investment made 5 years ago into $12,079.04 today (as of 10/25/2023). On a total return basis, that’s a result of 20.77% (something to think about: how might DVA 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:
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby Davis