Had You Purchased International Business Machines in 2015, Here’s The Investment Result – MMJ Stock Watch

“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.

Start date: 11/19/2015


End date: 11/18/2020
Start price/share: $136.74
End price/share: $116.77
Starting shares: 73.13
Ending shares: 90.90
Dividends reinvested/share: $30.55
Total return: 6.14%
Average annual return: 1.20%
Starting investment: $10,000.00
Ending investment: $10,614.92

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