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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 DISH Network Corp (NASD: DISH)? Today, we examine the outcome of a five year investment into the stock back in 2015.

Start date: 08/07/2015


End date: 08/06/2020
Start price/share: $66.92
End price/share: $34.30
Starting shares: 149.43
Ending shares: 149.43
Dividends reinvested/share: $0.00
Total return: -48.74%
Average annual return: -12.51%
Starting investment: $10,000.00
Ending investment: $5,124.28

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -12.51%. This would have turned a $10K investment made 5 years ago into $5,124.28 today (as of 08/06/2020). On a total return basis, that’s a result of -48.74% (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 piece of investment wisdom to leave you with:
“Smart investing doesn’t consist of buying good assets but of buying assets well. This is a very, very important distinction that very, very few people understand.” — Howard Marks