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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 investment philosophy practiced by Warren Buffett calls for investors to take a long-term horizon when making an investment, such as a five year holding period (or even longer), and reconsider making the investment in the first place if unable to envision holding the stock for at least five years. Today, we look at how such a long-term strategy would have done for investors in Discovery Inc – Series C (NASD: DISCK) back in 2015, holding through to today.

Start date: 01/12/2015


End date: 01/09/2020
Start price/share: $30.88
End price/share: $30.24
Starting shares: 323.83
Ending shares: 323.83
Dividends reinvested/share: $0.00
Total return: -2.07%
Average annual return: -0.42%
Starting investment: $10,000.00
Ending investment: $9,791.98

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -0.42%. This would have turned a $10K investment made 5 years ago into $9,791.98 today (as of 01/09/2020). On a total return basis, that’s a result of -2.07% (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.]

Another great investment quote to think about:
“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.” — Dave Ramsey