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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Discovery Inc (NASD: DISCA)? Today, we examine the outcome of a ten year investment into the stock back in 2011.

Start date: 05/16/2011


End date: 05/13/2021
Start price/share: $22.29
End price/share: $35.23
Starting shares: 448.63
Ending shares: 448.63
Dividends reinvested/share: $0.00
Total return: 58.05%
Average annual return: 4.68%
Starting investment: $10,000.00
Ending investment: $15,799.27

The above analysis shows the ten year investment result worked out as follows, with an annualized rate of return of 4.68%. This would have turned a $10K investment made 10 years ago into $15,799.27 today (as of 05/13/2021). On a total return basis, that’s a result of 58.05% (something to think about: how might DISCA shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions.” — Joel Greenblatt