Photo credit: commons.wikimedia.org

“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 Ulta Beauty Inc (NASD: ULTA)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 05/15/2019
$10,000

05/15/2019
  $11,792

05/14/2024
End date: 05/14/2024
Start price/share: $340.70
End price/share: $401.68
Starting shares: 29.35
Ending shares: 29.35
Dividends reinvested/share: $0.00
Total return: 17.90%
Average annual return: 3.35%
Starting investment: $10,000.00
Ending investment: $11,792.11

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 3.35%. This would have turned a $10K investment made 5 years ago into $11,792.11 today (as of 05/14/2024). On a total return basis, that’s a result of 17.90% (something to think about: how might ULTA 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:
“You make most of your money in a bear market, you just don’t realize it at the time.” — Shelby Davis