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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 DaVita Inc (NYSE: DVA)? Today, we examine the outcome of a five year investment into the stock back in 2015.

Start date: 03/10/2015
$10,000

03/10/2015
$9,885

03/09/2020
End date: 03/09/2020
Start price/share: $78.10
End price/share: $77.20
Starting shares: 128.04
Ending shares: 128.04
Dividends reinvested/share: $0.00
Total return: -1.15%
Average annual return: -0.23%
Starting investment: $10,000.00
Ending investment: $9,885.47

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -0.23%. This would have turned a $10K investment made 5 years ago into $9,885.47 today (as of 03/09/2020). On a total return basis, that’s a result of -1.15% (something to think about: how might DVA 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