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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: 12/03/2014


End date: 12/02/2019
Start price/share: $34.69
End price/share: $30.34
Starting shares: 288.27
Ending shares: 288.27
Dividends reinvested/share: $0.00
Total return: -12.54%
Average annual return: -2.64%
Starting investment: $10,000.00
Ending investment: $8,747.88

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -2.64%. This would have turned a $10K investment made 5 years ago into $8,747.88 today (as of 12/02/2019). On a total return basis, that’s a result of -12.54% (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:
“Don’t wait for the perfect time, you will wait forever. Always take advantage of the time you’re given and make it perfect.” — Daymond John