![](https://mmjstockwatch.com/wp-content/uploads/2019/02/warren-buffett-wikicommons.jpg)
“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a five year holding period for an investor who was considering Tesla Inc (NASD: TSLA) back in 2019, bought the stock, ignored the market’s ups and downs, and simply held through to today.
Start date: | 05/16/2019 |
|
|||
End date: | 05/15/2024 | ||||
Start price/share: | $15.22 | ||||
End price/share: | $173.99 | ||||
Starting shares: | 657.03 | ||||
Ending shares: | 657.03 | ||||
Dividends reinvested/share: | $0.00 | ||||
Total return: | 1,043.17% | ||||
Average annual return: | 62.74% | ||||
Starting investment: | $10,000.00 | ||||
Ending investment: | $114,301.25 |
As we can see, the five year investment result worked out exceptionally well, with an annualized rate of return of 62.74%. This would have turned a $10K investment made 5 years ago into $114,301.25 today (as of 05/15/2024). On a total return basis, that’s a result of 1,043.17% (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.]
More investment wisdom to ponder:
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” — Albert Einstein
TS