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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2016.

Start date: 07/18/2016


End date: 07/15/2021
Start price/share: $95.73
End price/share: $98.68
Starting shares: 104.46
Ending shares: 104.46
Dividends reinvested/share: $0.00
Total return: 3.08%
Average annual return: 0.61%
Starting investment: $10,000.00
Ending investment: $10,308.40

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 0.61%. This would have turned a $10K investment made 5 years ago into $10,308.40 today (as of 07/15/2021). On a total return basis, that’s a result of 3.08% (something to think about: how might DLTR shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“Behind every stock is a company. Find out what it’s doing.” — Peter Lynch