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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: 11/13/2019
$10,000

11/13/2019
  $3,084

11/12/2024
End date: 11/12/2024
Start price/share: $29.88
End price/share: $9.22
Starting shares: 334.67
Ending shares: 334.67
Dividends reinvested/share: $0.00
Total return: -69.14%
Average annual return: -20.95%
Starting investment: $10,000.00
Ending investment: $3,084.82

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -20.95%. This would have turned a $10K investment made 5 years ago into $3,084.82 today (as of 11/12/2024). On a total return basis, that’s a result of -69.14% (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 investment quote to leave you with:
“Never test the depth of a river with both feet.” — Warren Buffett