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“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


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