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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: 10/26/2017


End date: 10/25/2022
Start price/share: $59.95
End price/share: $42.60
Starting shares: 166.81
Ending shares: 166.81
Dividends reinvested/share: $0.00
Total return: -28.94%
Average annual return: -6.60%
Starting investment: $10,000.00
Ending investment: $7,107.79

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -6.60%. This would have turned a $10K investment made 5 years ago into $7,107.79 today (as of 10/25/2022). On a total return basis, that’s a result of -28.94% (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 investor’s chief problem, even his worst enemy, is likely to be himself.” — Benjamin Graham