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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 lululemon athletica inc (NASD: LULU)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 05/13/2019


End date: 05/10/2024
Start price/share: $167.57
End price/share: $352.96
Starting shares: 59.68
Ending shares: 59.68
Dividends reinvested/share: $0.00
Total return: 110.63%
Average annual return: 16.08%
Starting investment: $10,000.00
Ending investment: $21,067.33

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 16.08%. This would have turned a $10K investment made 5 years ago into $21,067.33 today (as of 05/10/2024). On a total return basis, that’s a result of 110.63% (something to think about: how might LULU 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:
“Only when the tide goes out do you discover who’s been swimming naked.” — Warren Buffett