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

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 2019.

Start date: 01/30/2019


End date: 01/29/2024
Start price/share: $58.97
End price/share: $72.95
Starting shares: 169.58
Ending shares: 169.58
Dividends reinvested/share: $0.00
Total return: 23.71%
Average annual return: 4.35%
Starting investment: $10,000.00
Ending investment: $12,372.64

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 4.35%. This would have turned a $10K investment made 5 years ago into $12,372.64 today (as of 01/29/2024). On a total return basis, that’s a result of 23.71% (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.]

One more piece of investment wisdom to leave you with:
“To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.” — Benjamin Graham