“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 Live Nation Entertainment Inc (NYSE: LYV)? Today, we examine the outcome of a ten year investment into the stock back in 2010.
| Start date: | 03/01/2010 |
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| End date: | 02/26/2020 | ||||
| Start price/share: | $12.69 | ||||
| End price/share: | $60.76 | ||||
| Starting shares: | 788.02 | ||||
| Ending shares: | 788.02 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 378.80% | ||||
| Average annual return: | 16.96% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $47,883.64 | ||||
As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 16.96%. This would have turned a $10K investment made 10 years ago into $47,883.64 today (as of 02/26/2020). On a total return basis, that’s a result of 378.80% (something to think about: how might LYV shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.” — Bernard Baruch
