“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 Charles River Laboratories International Inc. (NYSE: CRL)? Today, we examine the outcome of a five year investment into the stock back in 2018.
| Start date: | 08/13/2018 |
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| End date: | 08/10/2023 | ||||
| Start price/share: | $119.93 | ||||
| End price/share: | $217.61 | ||||
| Starting shares: | 83.38 | ||||
| Ending shares: | 83.38 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 81.45% | ||||
| Average annual return: | 12.67% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $18,145.03 | ||||
As shown above, the five year investment result worked out quite well, with an annualized rate of return of 12.67%. This would have turned a $10K investment made 5 years ago into $18,145.03 today (as of 08/10/2023). On a total return basis, that’s a result of 81.45% (something to think about: how might CRL 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:
“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.” — Peter Lynch
