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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 ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into DaVita Inc (NYSE: DVA)? Today, we examine the outcome of a ten year investment into the stock back in 2010.

Start date: 08/18/2010


End date: 08/17/2020
Start price/share: $32.32
End price/share: $86.26
Starting shares: 309.41
Ending shares: 309.41
Dividends reinvested/share: $0.00
Total return: 166.89%
Average annual return: 10.31%
Starting investment: $10,000.00
Ending investment: $26,692.08

As shown above, the ten year investment result worked out quite well, with an annualized rate of return of 10.31%. This would have turned a $10K investment made 10 years ago into $26,692.08 today (as of 08/17/2020). On a total return basis, that’s a result of 166.89% (something to think about: how might DVA shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“Markets can remain irrational longer than you can remain solvent.” — John Maynard Keynes