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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 Warner Bros Discovery Inc (NASD: WBD)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 04/04/2019


End date: 04/03/2024
Start price/share: $28.88
End price/share: $8.73
Starting shares: 346.26
Ending shares: 346.26
Dividends reinvested/share: $0.00
Total return: -69.77%
Average annual return: -21.27%
Starting investment: $10,000.00
Ending investment: $3,022.85

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -21.27%. This would have turned a $10K investment made 5 years ago into $3,022.85 today (as of 04/03/2024). On a total return basis, that’s a result of -69.77% (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.]

Here’s one more great investment quote before you go:
“Nearly every time I strayed from the herd, I’ve made a lot of money. Wandering away from the action is the way to find the new action.” — Jim Rogers