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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 2016.

Start date: 03/01/2016


End date: 02/26/2021
Start price/share: $48.74
End price/share: $31.51
Starting shares: 205.17
Ending shares: 205.17
Dividends reinvested/share: $0.00
Total return: -35.35%
Average annual return: -8.36%
Starting investment: $10,000.00
Ending investment: $6,465.96

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -8.36%. This would have turned a $10K investment made 5 years ago into $6,465.96 today (as of 02/26/2021). On a total return basis, that’s a result of -35.35% (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:
“Every day that you’re not selling an asset in your portfolio, you’re choosing to buy it.” — Sam Zell