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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 Discovery Inc (NASD: DISCA)? Today, we examine the outcome of a five year investment into the stock back in 2016.

Start date: 06/09/2016


End date: 06/08/2021
Start price/share: $27.33
End price/share: $30.04
Starting shares: 365.90
Ending shares: 365.90
Dividends reinvested/share: $0.00
Total return: 9.92%
Average annual return: 1.91%
Starting investment: $10,000.00
Ending investment: $10,992.18

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 1.91%. This would have turned a $10K investment made 5 years ago into $10,992.18 today (as of 06/08/2021). On a total return basis, that’s a result of 9.92% (something to think about: how might DISCA 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:
“The right time for a company to finance its growth is not when it needs capital, but rather when the market is most receptive to providing capital.” — Michael Milken