“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 2017.
| Start date: | 04/13/2017 |
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| End date: | 04/12/2022 | ||||
| Start price/share: | $62.38 | ||||
| End price/share: | $31.78 | ||||
| Starting shares: | 160.31 | ||||
| Ending shares: | 160.31 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -49.05% | ||||
| Average annual return: | -12.62% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $5,094.01 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -12.62%. This would have turned a $10K investment made 5 years ago into $5,094.01 today (as of 04/12/2022). On a total return basis, that’s a result of -49.05% (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.]
Here’s one more great investment quote before you go:
“Sentimentality about an investments leads to lack of discipline.” — Sam Zell
