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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: 11/21/2017


End date: 11/18/2022
Start price/share: $181.86
End price/share: $112.05
Starting shares: 54.99
Ending shares: 54.99
Dividends reinvested/share: $0.00
Total return: -38.39%
Average annual return: -9.24%
Starting investment: $10,000.00
Ending investment: $6,161.74

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -9.24%. This would have turned a $10K investment made 5 years ago into $6,161.74 today (as of 11/18/2022). On a total return basis, that’s a result of -38.39% (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 investment quote to leave you with:
“The best stock to buy is the one you already own.” — Peter Lynch