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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: 08/26/2016


End date: 08/25/2021
Start price/share: $85.50
End price/share: $106.32
Starting shares: 116.96
Ending shares: 116.96
Dividends reinvested/share: $0.00
Total return: 24.35%
Average annual return: 4.46%
Starting investment: $10,000.00
Ending investment: $12,437.99

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 4.46%. This would have turned a $10K investment made 5 years ago into $12,437.99 today (as of 08/25/2021). On a total return basis, that’s a result of 24.35% (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.]

Another great investment quote to think about:
“Every once in a while, the market does something so stupid it takes your breath away.” — Jim Cramer