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“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 Warner Bros Discovery Inc (NASD: WBD)? Today, we examine the outcome of a ten year investment into the stock back in 2013.

Start date: 04/12/2013


End date: 04/11/2023
Start price/share: $81.03
End price/share: $14.93
Starting shares: 123.41
Ending shares: 123.41
Dividends reinvested/share: $0.00
Total return: -81.57%
Average annual return: -15.56%
Starting investment: $10,000.00
Ending investment: $1,841.96

As we can see, the ten year investment result worked out poorly, with an annualized rate of return of -15.56%. This would have turned a $10K investment made 10 years ago into $1,841.96 today (as of 04/11/2023). On a total return basis, that’s a result of -81.57% (something to think about: how might WBD shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“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