“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 Warner Bros Discovery Inc (NASD: WBD)? Today, we examine the outcome of a ten year investment into the stock back in 2014.
| Start date: | 10/30/2014 |
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| End date: | 10/29/2024 | ||||
| Start price/share: | $35.94 | ||||
| End price/share: | $7.55 | ||||
| Starting shares: | 278.24 | ||||
| Ending shares: | 278.24 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -78.99% | ||||
| Average annual return: | -14.44% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $2,100.57 | ||||
As we can see, the ten year investment result worked out poorly, with an annualized rate of return of -14.44%. This would have turned a $10K investment made 10 years ago into $2,100.57 today (as of 10/29/2024). On a total return basis, that’s a result of -78.99% (something to think about: how might WBD shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” — Benjamin Graham
