Photo credit:

“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 2014.

Start date: 06/09/2014


End date: 06/06/2024
Start price/share: $80.35
End price/share: $8.34
Starting shares: 124.46
Ending shares: 124.46
Dividends reinvested/share: $0.00
Total return: -89.62%
Average annual return: -20.27%
Starting investment: $10,000.00
Ending investment: $1,038.05

As shown above, the decade-long investment result worked out poorly, with an annualized rate of return of -20.27%. This would have turned a $10K investment made 10 years ago into $1,038.05 today (as of 06/06/2024). On a total return basis, that’s a result of -89.62% (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:
“In investing, what is comfortable is rarely profitable.” — Robert Arnott