“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 DaVita Inc (NYSE: DVA)? Today, we examine the outcome of a ten year investment into the stock back in 2009.
| Start date: | 08/20/2009 |
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| End date: | 08/19/2019 | ||||
| Start price/share: | $25.88 | ||||
| End price/share: | $56.97 | ||||
| Starting shares: | 386.40 | ||||
| Ending shares: | 386.40 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 120.13% | ||||
| Average annual return: | 8.21% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $22,017.49 | ||||
As we can see, the ten year investment result worked out well, with an annualized rate of return of 8.21%. This would have turned a $10K investment made 10 years ago into $22,017.49 today (as of 08/19/2019). On a total return basis, that’s a result of 120.13% (something to think about: how might DVA shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“All intelligent investing is value investing: acquiring more that you are paying for. You must value the business in order to value the stock.” — Charlie Munger
