“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 Dollar Tree Inc (NASD: DLTR)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 04/22/2015 |
|
|||
| End date: | 04/21/2020 | ||||
| Start price/share: | $80.57 | ||||
| End price/share: | $77.74 | ||||
| Starting shares: | 124.12 | ||||
| Ending shares: | 124.12 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -3.51% | ||||
| Average annual return: | -0.71% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $9,649.82 | ||||
As shown above, the five year investment result worked out poorly, with an annualized rate of return of -0.71%. This would have turned a $10K investment made 5 years ago into $9,649.82 today (as of 04/21/2020). On a total return basis, that’s a result of -3.51% (something to think about: how might DLTR shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.” — William Feather
