“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 2016.
| Start date: | 01/27/2016 |
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| End date: | 01/26/2021 | ||||
| Start price/share: | $47.09 | ||||
| End price/share: | $31.56 | ||||
| Starting shares: | 212.36 | ||||
| Ending shares: | 212.36 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -32.98% | ||||
| Average annual return: | -7.69% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $6,701.14 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -7.69%. This would have turned a $10K investment made 5 years ago into $6,701.14 today (as of 01/26/2021). On a total return basis, that’s a result of -32.98% (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.]
Here’s one more great investment quote before you go:
“Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon. Few are willing and able to devote sufficient time and effort to become value investors, and only a fraction of those have the proper mind-set to succeed.” — Seth Klarman
