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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 United Airlines Holdings Inc (NASD: UAL)? Today, we examine the outcome of a five year investment into the stock back in 2017.

Start date: 02/17/2017


End date: 02/16/2022
Start price/share: $75.96
End price/share: $50.21
Starting shares: 131.65
Ending shares: 131.65
Dividends reinvested/share: $0.00
Total return: -33.90%
Average annual return: -7.95%
Starting investment: $10,000.00
Ending investment: $6,608.74

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -7.95%. This would have turned a $10K investment made 5 years ago into $6,608.74 today (as of 02/16/2022). On a total return basis, that’s a result of -33.90% (something to think about: how might UAL 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 make most of your money in a bear market, you just don’t realize it at the time.” — Shelby Davis