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“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.

Start date: 02/25/2002


End date: 02/24/2022
Start price/share: $10.20
End price/share: $136.13
Starting shares: 980.39
Ending shares: 980.39
Dividends reinvested/share: $0.00
Total return: 1,234.61%
Average annual return: 13.82%
Starting investment: $10,000.00
Ending investment: $133,348.37

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