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

Start date: 11/21/2018


End date: 11/20/2023
Start price/share: $62.46
End price/share: $65.04
Starting shares: 160.10
Ending shares: 160.10
Dividends reinvested/share: $0.00
Total return: 4.13%
Average annual return: 0.81%
Starting investment: $10,000.00
Ending investment: $10,411.61

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 0.81%. This would have turned a $10K investment made 5 years ago into $10,411.61 today (as of 11/20/2023). On a total return basis, that’s a result of 4.13% (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:
“Don’t look for the needle in the haystack, just buy the haystack.” — John Bogle