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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 Chipotle Mexican Grill Inc (NYSE: CMG)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 01/31/2019


End date: 01/30/2024
Start price/share: $529.61
End price/share: $2,419.28
Starting shares: 18.88
Ending shares: 18.88
Dividends reinvested/share: $0.00
Total return: 356.80%
Average annual return: 35.50%
Starting investment: $10,000.00
Ending investment: $45,676.88

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 35.50%. This would have turned a $10K investment made 5 years ago into $45,676.88 today (as of 01/30/2024). On a total return basis, that’s a result of 356.80% (something to think about: how might CMG shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“Most investors want to do today what they should have done yesterday.” — Larry Summers