“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— 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 two-decade period?
Today, let’s look backwards in time to 2002, and take a look at what happened to investors who asked that very question about Dollar Tree Inc (NASD: DLTR), by taking a look at the investment outcome over a two-decade holding period.
|Average annual return:||13.82%|
As we can see, the two-decade investment result worked out quite well, with an annualized rate of return of 13.82%. This would have turned a $10K investment made 20 years ago into $133,348.37 today (as of 02/24/2022). On a total return basis, that’s a result of 1,234.61% (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:
“You make most of your money in a bear market, you just don’t realize it at the time.” — Shelby Davis