“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 Discovery Inc (NASD: DISCA)? Today, we examine the outcome of a ten year investment into the stock back in 2011.
| Start date: | 05/16/2011 |
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| End date: | 05/13/2021 | ||||
| Start price/share: | $22.29 | ||||
| End price/share: | $35.23 | ||||
| Starting shares: | 448.63 | ||||
| Ending shares: | 448.63 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 58.05% | ||||
| Average annual return: | 4.68% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,799.27 | ||||
The above analysis shows the ten year investment result worked out as follows, with an annualized rate of return of 4.68%. This would have turned a $10K investment made 10 years ago into $15,799.27 today (as of 05/13/2021). On a total return basis, that’s a result of 58.05% (something to think about: how might DISCA shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions.” — Joel Greenblatt
