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“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


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