“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 Tesla Inc (NASD: TSLA)? Today, we examine the outcome of a five year investment into the stock back in 2018.
| Start date: | 11/02/2018 |
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| End date: | 11/01/2023 | ||||
| Start price/share: | $23.09 | ||||
| End price/share: | $205.66 | ||||
| Starting shares: | 433.09 | ||||
| Ending shares: | 433.09 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 790.69% | ||||
| Average annual return: | 54.86% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $89,062.79 | ||||
The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 54.86%. This would have turned a $10K investment made 5 years ago into $89,062.79 today (as of 11/01/2023). On a total return basis, that’s a result of 790.69% (something to think about: how might TSLA shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.” — Charlie Munger
