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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: 10/15/2019
$10,000

10/15/2019
  $2,706

10/14/2024
End date: 10/14/2024
Start price/share: $27.86
End price/share: $7.54
Starting shares: 358.94
Ending shares: 358.94
Dividends reinvested/share: $0.00
Total return: -72.94%
Average annual return: -22.99%
Starting investment: $10,000.00
Ending investment: $2,706.60

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -22.99%. This would have turned a $10K investment made 5 years ago into $2,706.60 today (as of 10/14/2024). On a total return basis, that’s a result of -72.94% (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 piece of investment wisdom to leave you with:
“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.” — Warren Buffett