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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 United Airlines Holdings Inc (NASD: UAL)? Today, we examine the outcome of a five year investment into the stock back in 2015.

Start date: 08/05/2015


End date: 08/04/2020
Start price/share: $58.11
End price/share: $32.29
Starting shares: 172.09
Ending shares: 172.09
Dividends reinvested/share: $0.00
Total return: -44.43%
Average annual return: -11.08%
Starting investment: $10,000.00
Ending investment: $5,557.22

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -11.08%. This would have turned a $10K investment made 5 years ago into $5,557.22 today (as of 08/04/2020). On a total return basis, that’s a result of -44.43% (something to think about: how might UAL 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:
“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.” — Warren Buffett