“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty 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 twenty year investment into the stock back in 2001.
| Start date: | 02/23/2001 |
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| End date: | 02/22/2021 | ||||
| Start price/share: | $9.00 | ||||
| End price/share: | $104.88 | ||||
| Starting shares: | 1,111.11 | ||||
| Ending shares: | 1,111.11 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,065.33% | ||||
| Average annual return: | 13.06% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $116,617.53 | ||||
As shown above, the twenty year investment result worked out quite well, with an annualized rate of return of 13.06%. This would have turned a $10K investment made 20 years ago into $116,617.53 today (as of 02/22/2021). On a total return basis, that’s a result of 1,065.33% (something to think about: how might DLTR shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“The intelligent investor is a realist who sells to optimists and buys from pessimists.” — Benjamin Graham
