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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 Warner Bros Discovery Inc (NASD: WBD)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 03/16/2018


End date: 03/15/2023
Start price/share: $23.21
End price/share: $13.57
Starting shares: 430.85
Ending shares: 430.85
Dividends reinvested/share: $0.00
Total return: -41.53%
Average annual return: -10.18%
Starting investment: $10,000.00
Ending investment: $5,846.09

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -10.18%. This would have turned a $10K investment made 5 years ago into $5,846.09 today (as of 03/15/2023). On a total return basis, that’s a result of -41.53% (something to think about: how might WBD 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:
“Never is there a better time to buy a stock than when a basically sound company, for whatever reason, temporarily falls out of favor with the investment community.” — Geraldine Weiss