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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: 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