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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a ten year period?

Today, let’s look backwards in time to 2011, and take a look at what happened to investors who asked that very question about United Airlines Holdings Inc (NASD: UAL), by taking a look at the investment outcome over a ten year holding period.

Start date: 09/06/2011


End date: 09/02/2021
Start price/share: $17.64
End price/share: $46.76
Starting shares: 566.89
Ending shares: 566.89
Dividends reinvested/share: $0.00
Total return: 165.08%
Average annual return: 10.24%
Starting investment: $10,000.00
Ending investment: $26,501.84

As shown above, the ten year investment result worked out quite well, with an annualized rate of return of 10.24%. This would have turned a $10K investment made 10 years ago into $26,501.84 today (as of 09/02/2021). On a total return basis, that’s a result of 165.08% (something to think about: how might UAL shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” — Peter Lynch