“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 DISH Network Corp (NASD: DISH)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 06/24/2015 |
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| End date: | 06/23/2020 | ||||
| Start price/share: | $69.34 | ||||
| End price/share: | $35.16 | ||||
| Starting shares: | 144.22 | ||||
| Ending shares: | 144.22 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -49.29% | ||||
| Average annual return: | -12.69% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $5,071.76 | ||||
As shown above, the five year investment result worked out poorly, with an annualized rate of return of -12.69%. This would have turned a $10K investment made 5 years ago into $5,071.76 today (as of 06/23/2020). On a total return basis, that’s a result of -49.29% (something to think about: how might DISH shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.” — Benjamin Graham
