“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 Take-Two Interactive Software, Inc. (NASD: TTWO)? Today, we examine the outcome of a five year investment into the stock back in 2019.
| Start date: | 04/26/2019 |
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| End date: | 04/25/2024 | ||||
| Start price/share: | $96.25 | ||||
| End price/share: | $143.43 | ||||
| Starting shares: | 103.90 | ||||
| Ending shares: | 103.90 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 49.02% | ||||
| Average annual return: | 8.30% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $14,901.75 | ||||
As shown above, the five year investment result worked out well, with an annualized rate of return of 8.30%. This would have turned a $10K investment made 5 years ago into $14,901.75 today (as of 04/25/2024). On a total return basis, that’s a result of 49.02% (something to think about: how might TTWO 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 ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine.” — Warren Buffett
