“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: | 11/01/2016 |
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| End date: | 10/29/2021 | ||||
| Start price/share: | $57.19 | ||||
| End price/share: | $41.07 | ||||
| Starting shares: | 174.86 | ||||
| Ending shares: | 174.86 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -28.19% | ||||
| Average annual return: | -6.41% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $7,182.98 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -6.41%. This would have turned a $10K investment made 5 years ago into $7,182.98 today (as of 10/29/2021). On a total return basis, that’s a result of -28.19% (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.]
Another great investment quote to think about:
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.” — Warren Buffett
