“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: | 12/21/2017 |
|
|||
| End date: | 12/20/2022 | ||||
| Start price/share: | $177.45 | ||||
| End price/share: | $117.09 | ||||
| Starting shares: | 56.35 | ||||
| Ending shares: | 56.35 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -34.02% | ||||
| Average annual return: | -7.98% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $6,597.98 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -7.98%. This would have turned a $10K investment made 5 years ago into $6,597.98 today (as of 12/20/2022). On a total return basis, that’s a result of -34.02% (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.]
Here’s one more great investment quote before you go:
“The individual investor should act consistently as an investor and not as a speculator.” — Benjamin Graham
