“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 Amazon.com Inc (NASD: AMZN)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 10/30/2015 |
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| End date: | 10/29/2020 | ||||
| Start price/share: | $625.90 | ||||
| End price/share: | $3,211.01 | ||||
| Starting shares: | 15.98 | ||||
| Ending shares: | 15.98 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 413.02% | ||||
| Average annual return: | 38.66% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $51,303.25 | ||||
As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 38.66%. This would have turned a $10K investment made 5 years ago into $51,303.25 today (as of 10/29/2020). On a total return basis, that’s a result of 413.02% (something to think about: how might AMZN shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” — Benjamin Graham
