“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 ten 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 ten year investment into the stock back in 2010.
| Start date: | 03/16/2010 |
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| End date: | 03/13/2020 | ||||
| Start price/share: | $16.58 | ||||
| End price/share: | $22.89 | ||||
| Starting shares: | 603.14 | ||||
| Ending shares: | 603.14 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 38.06% | ||||
| Average annual return: | 3.28% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,809.00 | ||||
As shown above, the ten year investment result worked out as follows, with an annualized rate of return of 3.28%. This would have turned a $10K investment made 10 years ago into $13,809.00 today (as of 03/13/2020). On a total return basis, that’s a result of 38.06% (something to think about: how might DISCA shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Games are won by players who focus on the playing field, not by those whose eyes are glued to the scoreboard.” — Warren Buffett
