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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 United Airlines Holdings Inc (NASD: UAL)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 06/27/2018


End date: 06/26/2023
Start price/share: $69.57
End price/share: $53.32
Starting shares: 143.74
Ending shares: 143.74
Dividends reinvested/share: $0.00
Total return: -23.36%
Average annual return: -5.18%
Starting investment: $10,000.00
Ending investment: $7,664.78

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -5.18%. This would have turned a $10K investment made 5 years ago into $7,664.78 today (as of 06/26/2023). On a total return basis, that’s a result of -23.36% (something to think about: how might UAL 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:
“An investment in knowledge pays the best interest.” — Benjamin Franklin