“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: | 08/18/2015 |
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| End date: | 08/17/2020 | ||||
| Start price/share: | $79.37 | ||||
| End price/share: | $100.87 | ||||
| Starting shares: | 125.99 | ||||
| Ending shares: | 125.99 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 27.09% | ||||
| Average annual return: | 4.91% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,709.88 | ||||
As shown above, the five year investment result worked out as follows, with an annualized rate of return of 4.91%. This would have turned a $10K investment made 5 years ago into $12,709.88 today (as of 08/17/2020). On a total return basis, that’s a result of 27.09% (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.]
Another great investment quote to think about:
“Money is better than poverty, if only for financial reasons.” — Woody Allen
