“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 decade-long 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 decade-long investment into the stock back in 2013.
| Start date: | 09/16/2013 |
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| End date: | 09/14/2023 | ||||
| Start price/share: | $78.65 | ||||
| End price/share: | $11.73 | ||||
| Starting shares: | 127.15 | ||||
| Ending shares: | 127.15 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -85.09% | ||||
| Average annual return: | -17.33% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $1,491.01 | ||||
As shown above, the decade-long investment result worked out poorly, with an annualized rate of return of -17.33%. This would have turned a $10K investment made 10 years ago into $1,491.01 today (as of 09/14/2023). On a total return basis, that’s a result of -85.09% (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.]
Another great investment quote to think about:
“If I’ve learned one thing in this life it’s this: even if you lose, don’t lose the lesson.” — Daymond John
