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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: 06/21/2019


End date: 06/20/2024
Start price/share: $30.69
End price/share: $7.04
Starting shares: 325.84
Ending shares: 325.84
Dividends reinvested/share: $0.00
Total return: -77.06%
Average annual return: -25.50%
Starting investment: $10,000.00
Ending investment: $2,293.14

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -25.50%. This would have turned a $10K investment made 5 years ago into $2,293.14 today (as of 06/20/2024). On a total return basis, that’s a result of -77.06% (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:
“You make most of your money in a bear market, you just don’t realize it at the time.” — Shelby Davis