“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 2020.
| Start date: | 04/03/2020 |
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| End date: | 04/02/2025 | ||||
| Start price/share: | $18.36 | ||||
| End price/share: | $10.56 | ||||
| Starting shares: | 544.66 | ||||
| Ending shares: | 544.66 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -42.48% | ||||
| Average annual return: | -10.47% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $5,752.32 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -10.47%. This would have turned a $10K investment made 5 years ago into $5,752.32 today (as of 04/02/2025). On a total return basis, that’s a result of -42.48% (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:
“If you’re prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won’t get bored.” — Peter Lynch
