Photo credit:

“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: 06/18/2001


End date: 06/15/2021
Start price/share: $8.17
End price/share: $100.68
Starting shares: 1,223.99
Ending shares: 1,223.99
Dividends reinvested/share: $0.00
Total return: 1,132.31%
Average annual return: 13.38%
Starting investment: $10,000.00
Ending investment: $123,318.40

The above analysis shows the twenty year investment result worked out quite well, with an annualized rate of return of 13.38%. This would have turned a $10K investment made 20 years ago into $123,318.40 today (as of 06/15/2021). On a total return basis, that’s a result of 1,132.31% (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.]

Here’s one more great investment quote before you go:
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” — Seth Klarman