“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 Boeing Co. (NYSE: BA)? Today, we examine the outcome of a five year investment into the stock back in 2020.
| Start date: | 03/26/2020 |
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| End date: | 03/25/2025 | ||||
| Start price/share: | $180.55 | ||||
| End price/share: | $182.59 | ||||
| Starting shares: | 55.39 | ||||
| Ending shares: | 55.39 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1.13% | ||||
| Average annual return: | 0.22% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,110.49 | ||||
As shown above, the five year investment result worked out as follows, with an annualized rate of return of 0.22%. This would have turned a $10K investment made 5 years ago into $10,110.49 today (as of 03/25/2025). On a total return basis, that’s a result of 1.13% (something to think about: how might BA shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.” — Warren Buffett
