“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into DISH Network Corp (NASD: DISH)? Today, we examine the outcome of a ten year investment into the stock back in 2013.
| Start date: | 04/17/2013 |
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| End date: | 04/14/2023 | ||||
| Start price/share: | $37.83 | ||||
| End price/share: | $7.84 | ||||
| Starting shares: | 264.34 | ||||
| Ending shares: | 264.34 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -79.28% | ||||
| Average annual return: | -14.57% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $2,071.53 | ||||
As shown above, the ten year investment result worked out poorly, with an annualized rate of return of -14.57%. This would have turned a $10K investment made 10 years ago into $2,071.53 today (as of 04/14/2023). On a total return basis, that’s a result of -79.28% (something to think about: how might DISH shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Value investing means really asking what are the best values, and not assuming that because something looks expensive that it is, or assuming that because a stock is down in price and trades at low multiples that it is a bargain.” — Bill Miller
