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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 PG&E Corp (NYSE: PCG)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 03/27/2018


End date: 03/24/2023
Start price/share: $43.94
End price/share: $15.64
Starting shares: 227.58
Ending shares: 227.58
Dividends reinvested/share: $0.00
Total return: -64.41%
Average annual return: -18.68%
Starting investment: $10,000.00
Ending investment: $3,560.24

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -18.68%. This would have turned a $10K investment made 5 years ago into $3,560.24 today (as of 03/24/2023). On a total return basis, that’s a result of -64.41% (something to think about: how might PCG 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:
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” — Benjamin Graham