5-Year Backtest: Buy and Hold BA (The Boeing Company)

This analysis evaluates a buy-and-hold strategy over the past 5 years, providing a historical perspective on BA's performance from 2020-07-06 to 2025-07-03.

Note: This simulation uses adjusted close prices, meaning all historical prices have been retroactively adjusted for splits and dividends. To achieve similar results in practice, you would need to reinvest all dividends automatically as they are paid.

Performance Overview

Starting with an initial capital of $10,000.00, we purchased shares of BA on 2020-07-06, at a price of $187.91 per share (adjusted for splits and dividends). No trading, no adjustments — just a simple buy-and-hold approach.

We held the position continuously through every market twist and turn, never selling. As of 2025-07-03, the price of BA had risen to $215.92. While we didn't sell, we can still assess the performance by calculating the current value of the investment: $11,490.61 — a total gain of 14.91%.

This translates into an annualized return of 2.82% over the entire period. The return is positive but relatively low. Depending on the time frame and asset, it may underperform passive investment benchmarks.

Drawdown and Risk

The maximum drawdown recorded during this period was 56.96%. This drawdown began after a peak price of $269.19 on 2021-03-12, and reached its lowest point on 2022-06-13 when the price fell to $115.86. The drawdown lasted for 458 days.

The drawdown was substantial, though not uncommon for long-term equity strategies that span full market cycles. This level suggests exposure to significant corrections or crashes. The maximum drawdown lasted over a year, indicating an extended period of underperformance. This duration is typical of major corrections or bear markets.

The Calmar Ratio — annualized return divided by maximum drawdown — was 0.05, reflecting the tradeoff between return and volatility.

The ratio is extremely low. The strategy barely delivered a positive return relative to the risk taken.