“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: | 07/17/2020 |
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| End date: | 07/16/2025 | ||||
| Start price/share: | $38.00 | ||||
| End price/share: | $30.00 | ||||
| Starting shares: | 263.16 | ||||
| Ending shares: | 263.16 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -21.05% | ||||
| Average annual return: | -4.62% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $7,893.81 | ||||
As shown above, the five year investment result worked out poorly, with an annualized rate of return of -4.62%. This would have turned a $10K investment made 5 years ago into $7,893.81 today (as of 07/16/2025). On a total return basis, that’s a result of -21.05% (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.]
Here’s one more great investment quote before you go:
“You can’t be a good value investor without being an independent thinker; you’re seeing valuations that the market is not appreciating. But it’s critical that you understand why the market isn’t seeing the value you do.” — Joel Greenblatt
