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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 Meta Platforms Inc (NASD: META)? Today, we examine the outcome of a five year investment into the stock back in 2017.

Start date: 10/12/2017


End date: 10/11/2022
Start price/share: $172.55
End price/share: $128.54
Starting shares: 57.95
Ending shares: 57.95
Dividends reinvested/share: $0.00
Total return: -25.51%
Average annual return: -5.72%
Starting investment: $10,000.00
Ending investment: $7,449.00

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -5.72%. This would have turned a $10K investment made 5 years ago into $7,449.00 today (as of 10/11/2022). On a total return basis, that’s a result of -25.51% (something to think about: how might META shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“Don’t wait for the perfect time, you will wait forever. Always take advantage of the time you’re given and make it perfect.” — Daymond John