“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 |
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| 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
