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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: 03/27/2017
$10,000

03/27/2017
$6,257

03/24/2022
End date: 03/24/2022
Start price/share: $68.37
End price/share: $42.78
Starting shares: 146.26
Ending shares: 146.26
Dividends reinvested/share: $0.00
Total return: -37.43%
Average annual return: -8.96%
Starting investment: $10,000.00
Ending investment: $6,257.27

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -8.96%. This would have turned a $10K investment made 5 years ago into $6,257.27 today (as of 03/24/2022). On a total return basis, that’s a result of -37.43% (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.]

Another great investment quote to think about:
“The stock market is a device to transfer money from the impatient to the patient.” — Warren Buffett