Photo credit:

“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 Warner Bros Discovery Inc (NASD: WBD)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 11/23/2018


End date: 11/21/2023
Start price/share: $30.43
End price/share: $10.58
Starting shares: 328.62
Ending shares: 328.62
Dividends reinvested/share: $0.00
Total return: -65.23%
Average annual return: -19.06%
Starting investment: $10,000.00
Ending investment: $3,475.90

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -19.06%. This would have turned a $10K investment made 5 years ago into $3,475.90 today (as of 11/21/2023). On a total return basis, that’s a result of -65.23% (something to think about: how might WBD 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:
“Those who do not remember the past are condemned to repeat it.” — George Santayana