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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long 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 decade-long investment into the stock back in 2009.

Start date: 12/23/2009
$10,000

12/23/2009
$22,961

12/20/2019
End date: 12/20/2019
Start price/share: $13.40
End price/share: $30.78
Starting shares: 746.27
Ending shares: 746.27
Dividends reinvested/share: $0.00
Total return: 129.70%
Average annual return: 8.67%
Starting investment: $10,000.00
Ending investment: $22,961.37

As shown above, the decade-long investment result worked out well, with an annualized rate of return of 8.67%. This would have turned a $10K investment made 10 years ago into $22,961.37 today (as of 12/20/2019). On a total return basis, that’s a result of 129.70% (something to think about: how might DISCK shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“An investment in knowledge pays the best interest.” — Benjamin Franklin