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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 United Airlines Holdings Inc (NASD: UAL)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 08/06/2019
$10,000

08/06/2019
  $4,432

08/05/2024
End date: 08/05/2024
Start price/share: $85.46
End price/share: $37.88
Starting shares: 117.01
Ending shares: 117.01
Dividends reinvested/share: $0.00
Total return: -55.68%
Average annual return: -15.01%
Starting investment: $10,000.00
Ending investment: $4,432.47

The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -15.01%. This would have turned a $10K investment made 5 years ago into $4,432.47 today (as of 08/05/2024). On a total return basis, that’s a result of -55.68% (something to think about: how might UAL 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:
“The person who starts simply with the idea of getting rich won’t succeed; you must have a larger ambition.” — John Rockefeller