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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: DISCK)? Today, we examine the outcome of a five year investment into the stock back in 2016.

Start date: 09/27/2016


End date: 09/24/2021
Start price/share: $25.69
End price/share: $24.33
Starting shares: 389.26
Ending shares: 389.26
Dividends reinvested/share: $0.00
Total return: -5.29%
Average annual return: -1.08%
Starting investment: $10,000.00
Ending investment: $9,472.10

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -1.08%. This would have turned a $10K investment made 5 years ago into $9,472.10 today (as of 09/24/2021). On a total return basis, that’s a result of -5.29% (something to think about: how might DISCK 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:
“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.” — William Feather