“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 Zebra Technologies Corp. (NASD: ZBRA)? Today, we examine the outcome of a five year investment into the stock back in 2020.
| Start date: | 09/14/2020 |
|
|||
| End date: | 09/11/2025 | ||||
| Start price/share: | $251.26 | ||||
| End price/share: | $316.01 | ||||
| Starting shares: | 39.80 | ||||
| Ending shares: | 39.80 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 25.77% | ||||
| Average annual return: | 4.70% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,578.36 | ||||
The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 4.70%. This would have turned a $10K investment made 5 years ago into $12,578.36 today (as of 09/11/2025). On a total return basis, that’s a result of 25.77% (something to think about: how might ZBRA 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:
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” — Charlie Munger