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 Norwegian Cruise Line Holdings Ltd (NYSE: NCLH)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 02/28/2019


End date: 02/27/2024
Start price/share: $55.53
End price/share: $19.09
Starting shares: 180.08
Ending shares: 180.08
Dividends reinvested/share: $0.00
Total return: -65.62%
Average annual return: -19.23%
Starting investment: $10,000.00
Ending investment: $3,437.56

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -19.23%. This would have turned a $10K investment made 5 years ago into $3,437.56 today (as of 02/27/2024). On a total return basis, that’s a result of -65.62% (something to think about: how might NCLH shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.” — Benjamin Graham