“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 decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into United Airlines Holdings Inc (NASD: UAL)? Today, we examine the outcome of a decade-long investment into the stock back in 2010.
| Start date: | 04/07/2010 |
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| End date: | 04/06/2020 | ||||
| Start price/share: | $18.95 | ||||
| End price/share: | $24.02 | ||||
| Starting shares: | 527.70 | ||||
| Ending shares: | 527.70 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 26.75% | ||||
| Average annual return: | 2.40% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,678.15 | ||||
The above analysis shows the decade-long investment result worked out as follows, with an annualized rate of return of 2.40%. This would have turned a $10K investment made 10 years ago into $12,678.15 today (as of 04/06/2020). On a total return basis, that’s a result of 26.75% (something to think about: how might UAL shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“The policy of being too cautious is the greatest risk of all.” — Jawaharlal Nehru
