“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 |
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| 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
