“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: | 04/12/2016 |
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| End date: | 04/09/2021 | ||||
| Start price/share: | $43.74 | ||||
| End price/share: | $37.56 | ||||
| Starting shares: | 228.62 | ||||
| Ending shares: | 228.62 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -14.13% | ||||
| Average annual return: | -3.00% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $8,588.77 | ||||
As we can see, the five year investment result worked out poorly, with an annualized rate of return of -3.00%. This would have turned a $10K investment made 5 years ago into $8,588.77 today (as of 04/09/2021). On a total return basis, that’s a result of -14.13% (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 investment quote to leave you with:
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch
