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“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


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