“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 Catalent Inc (NYSE: CTLT)? Today, we examine the outcome of a five year investment into the stock back in 2019.
| Start date: | 07/31/2019 |
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| End date: | 07/30/2024 | ||||
| Start price/share: | $56.49 | ||||
| End price/share: | $59.04 | ||||
| Starting shares: | 177.02 | ||||
| Ending shares: | 177.02 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 4.51% | ||||
| Average annual return: | 0.89% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,453.25 | ||||
As shown above, the five year investment result worked out as follows, with an annualized rate of return of 0.89%. This would have turned a $10K investment made 5 years ago into $10,453.25 today (as of 07/30/2024). On a total return basis, that’s a result of 4.51% (something to think about: how might CTLT shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” — Robert Allen
