“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 Edwards Lifesciences Corp (NYSE: EW)? Today, we examine the outcome of a five year investment into the stock back in 2019.
| Start date: | 09/10/2019 |
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| End date: | 09/09/2024 | ||||
| Start price/share: | $72.76 | ||||
| End price/share: | $65.71 | ||||
| Starting shares: | 137.44 | ||||
| Ending shares: | 137.44 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -9.69% | ||||
| Average annual return: | -2.02% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $9,029.48 | ||||
As we can see, the five year investment result worked out poorly, with an annualized rate of return of -2.02%. This would have turned a $10K investment made 5 years ago into $9,029.48 today (as of 09/09/2024). On a total return basis, that’s a result of -9.69% (something to think about: how might EW 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 intelligent investor is a realist who sells to optimists and buys from pessimists.” — Benjamin Graham
