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“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 Discovery Inc (NASD: DISCA)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 06/27/2014


End date: 06/26/2019
Start price/share: $37.84
End price/share: $29.52
Starting shares: 264.27
Ending shares: 264.27
Dividends reinvested/share: $0.00
Total return: -21.99%
Average annual return: -4.84%
Starting investment: $10,000.00
Ending investment: $7,803.19

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -4.84%. This would have turned a $10K investment made 5 years ago into $7,803.19 today (as of 06/26/2019). On a total return basis, that’s a result of -21.99% (something to think about: how might DISCA 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:
“Successful investing is anticipating the anticipations of others.” — John Maynard Keynes