“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: | 09/09/2015 |
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| End date: | 09/08/2020 | ||||
| Start price/share: | $58.83 | ||||
| End price/share: | $33.03 | ||||
| Starting shares: | 169.98 | ||||
| Ending shares: | 169.98 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -43.86% | ||||
| Average annual return: | -10.90% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $5,613.73 | ||||
As we can see, the five year investment result worked out poorly, with an annualized rate of return of -10.90%. This would have turned a $10K investment made 5 years ago into $5,613.73 today (as of 09/08/2020). On a total return basis, that’s a result of -43.86% (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.]
More investment wisdom to ponder:
“History provides a crucial insight regarding market crises: they are inevitable, painful and ultimately surmountable.” — Shelby Davis
