“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 Warner Bros Discovery Inc (NASD: WBD)? Today, we examine the outcome of a five year investment into the stock back in 2017.
| Start date: | 09/20/2017 |
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| End date: | 09/19/2022 | ||||
| Start price/share: | $21.26 | ||||
| End price/share: | $13.16 | ||||
| Starting shares: | 470.37 | ||||
| Ending shares: | 470.37 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -38.10% | ||||
| Average annual return: | -9.15% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $6,189.06 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -9.15%. This would have turned a $10K investment made 5 years ago into $6,189.06 today (as of 09/19/2022). On a total return basis, that’s a result of -38.10% (something to think about: how might WBD 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:
“I make no attempt to forecast the market; my efforts are devoted to finding undervalued securities.” — Warren Buffett
