“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 2005.
| Start date: | 07/11/2005 |
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| End date: | 04/22/2025 | ||||
| Start price/share: | $3.48 | ||||
| End price/share: | $7.95 | ||||
| Starting shares: | 2,873.56 | ||||
| Ending shares: | 2,873.56 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 128.45% | ||||
| Average annual return: | 4.26% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $22,836.61 | ||||
As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 4.26%. This would have turned a $10K investment made 20 years ago into $22,836.61 today (as of 04/22/2025). On a total return basis, that’s a result of 128.45% (something to think about: how might WBD shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Every once in a while, the market does something so stupid it takes your breath away.” — Jim Cramer
