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

Start date: 08/19/2019
$10,000

08/19/2019
  $11,597

08/16/2024
End date: 08/16/2024
Start price/share: $325.25
End price/share: $377.23
Starting shares: 30.75
Ending shares: 30.75
Dividends reinvested/share: $0.00
Total return: 15.98%
Average annual return: 3.01%
Starting investment: $10,000.00
Ending investment: $11,597.43

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 3.01%. This would have turned a $10K investment made 5 years ago into $11,597.43 today (as of 08/16/2024). On a total return basis, that’s a result of 15.98% (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.]

One more piece of investment wisdom to leave you with:
“The most important thing about an investment philosophy is that you have one.” — David Booth