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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 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


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