“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 International Business Machines Corp (NYSE: IBM)? Today, we examine the outcome of a five year investment into the stock back in 2015.
|Average annual return:||1.20%|
The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 1.20%. This would have turned a $10K investment made 5 years ago into $10,614.92 today (as of 11/18/2020). On a total return basis, that’s a result of 6.14% (something to think about: how might IBM shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Beyond share price change, another component of IBM’s total return these past 5 years has been the payment by International Business Machines Corp of $30.55/share in dividends to shareholders. Automatic