“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 Dish Network Corporation – Class A (NASD: DISH)? Today, we examine the outcome of a five year investment into the stock back in 2014.
| Start date: | 09/29/2014 |
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| End date: | 09/26/2019 | ||||
| Start price/share: | $65.01 | ||||
| End price/share: | $34.00 | ||||
| Starting shares: | 153.82 | ||||
| Ending shares: | 153.82 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -47.70% | ||||
| Average annual return: | -12.17% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $5,230.26 | ||||
As shown above, the five year investment result worked out poorly, with an annualized rate of return of -12.17%. This would have turned a $10K investment made 5 years ago into $5,230.26 today (as of 09/26/2019). On a total return basis, that’s a result of -47.70% (something to think about: how might DISH 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:
“Smart investing doesn’t consist of buying good assets but of buying assets well. This is a very, very important distinction that very, very few people understand.” — Howard Marks
