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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten 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 ten year investment into the stock back in 2012.

Start date: 10/08/2012


End date: 10/05/2022
Start price/share: $60.66
End price/share: $12.22
Starting shares: 164.85
Ending shares: 164.85
Dividends reinvested/share: $0.00
Total return: -79.85%
Average annual return: -14.81%
Starting investment: $10,000.00
Ending investment: $2,014.08

As shown above, the ten year investment result worked out poorly, with an annualized rate of return of -14.81%. This would have turned a $10K investment made 10 years ago into $2,014.08 today (as of 10/05/2022). On a total return basis, that’s a result of -79.85% (something to think about: how might WBD shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.” — Benjamin Graham