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“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 ten 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 ten year investment into the stock back in 2014.

Start date: 09/23/2014
$10,000

09/23/2014
  $2,157

09/20/2024
End date: 09/20/2024
Start price/share: $38.22
End price/share: $8.24
Starting shares: 261.64
Ending shares: 261.64
Dividends reinvested/share: $0.00
Total return: -78.44%
Average annual return: -14.22%
Starting investment: $10,000.00
Ending investment: $2,157.05

The above analysis shows the ten year investment result worked out poorly, with an annualized rate of return of -14.22%. This would have turned a $10K investment made 10 years ago into $2,157.05 today (as of 09/20/2024). On a total return basis, that’s a result of -78.44% (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.]

More investment wisdom to ponder:
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” — Warren Buffett