“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 Caesars Entertainment Inc (NASD: CZR)? Today, we examine the outcome of a five year investment into the stock back in 2020.
| Start date: | 06/08/2020 |
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| End date: | 06/05/2025 | ||||
| Start price/share: | $44.81 | ||||
| End price/share: | $25.63 | ||||
| Starting shares: | 223.16 | ||||
| Ending shares: | 223.16 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -42.80% | ||||
| Average annual return: | -10.58% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $5,720.57 | ||||
As we can see, the five year investment result worked out poorly, with an annualized rate of return of -10.58%. This would have turned a $10K investment made 5 years ago into $5,720.57 today (as of 06/05/2025). On a total return basis, that’s a result of -42.80% (something to think about: how might CZR shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.” — Benjamin Graham
