“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 lululemon athletica inc (NASD: LULU)? Today, we examine the outcome of a five year investment into the stock back in 2020.
| Start date: | 04/30/2020 |
|
|||
| End date: | 04/29/2025 | ||||
| Start price/share: | $223.48 | ||||
| End price/share: | $271.27 | ||||
| Starting shares: | 44.75 | ||||
| Ending shares: | 44.75 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 21.38% | ||||
| Average annual return: | 3.95% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,137.31 | ||||
The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 3.95%. This would have turned a $10K investment made 5 years ago into $12,137.31 today (as of 04/29/2025). On a total return basis, that’s a result of 21.38% (something to think about: how might LULU 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:
“It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized.” — John Neff
