“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 |
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| 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
