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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 Align Technology Inc (NASD: ALGN)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 06/17/2019


End date: 06/14/2024
Start price/share: $288.68
End price/share: $256.01
Starting shares: 34.64
Ending shares: 34.64
Dividends reinvested/share: $0.00
Total return: -11.32%
Average annual return: -2.37%
Starting investment: $10,000.00
Ending investment: $8,870.44

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -2.37%. This would have turned a $10K investment made 5 years ago into $8,870.44 today (as of 06/14/2024). On a total return basis, that’s a result of -11.32% (something to think about: how might ALGN 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:
“The function of economic forecasting is to make astrology look respectable.” — John Galbraith