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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: DISCK)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 07/22/2014


End date: 07/19/2019
Start price/share: $41.17
End price/share: $29.00
Starting shares: 242.90
Ending shares: 242.90
Dividends reinvested/share: $0.00
Total return: -29.56%
Average annual return: -6.78%
Starting investment: $10,000.00
Ending investment: $7,042.27

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -6.78%. This would have turned a $10K investment made 5 years ago into $7,042.27 today (as of 07/19/2019). On a total return basis, that’s a result of -29.56% (something to think about: how might DISCK shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.” — William Feather