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

Start date: 06/20/2019


End date: 06/18/2024
Start price/share: $358.57
End price/share: $108.10
Starting shares: 27.89
Ending shares: 27.89
Dividends reinvested/share: $0.00
Total return: -69.85%
Average annual return: -21.32%
Starting investment: $10,000.00
Ending investment: $3,015.24

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -21.32%. This would have turned a $10K investment made 5 years ago into $3,015.24 today (as of 06/18/2024). On a total return basis, that’s a result of -69.85% (something to think about: how might ILMN 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:
“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” — Warren Buffett