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 Incyte Corporation (NASD: INCY)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 01/02/2019


End date: 12/29/2023
Start price/share: $63.56
End price/share: $62.79
Starting shares: 157.33
Ending shares: 157.33
Dividends reinvested/share: $0.00
Total return: -1.21%
Average annual return: -0.24%
Starting investment: $10,000.00
Ending investment: $9,880.77

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -0.24%. This would have turned a $10K investment made 5 years ago into $9,880.77 today (as of 12/29/2023). On a total return basis, that’s a result of -1.21% (something to think about: how might INCY shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby Davis