“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty 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 twenty year investment into the stock back in 2002.
| Start date: | 09/09/2002 |
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| End date: | 09/06/2022 | ||||
| Start price/share: | $8.20 | ||||
| End price/share: | $138.31 | ||||
| Starting shares: | 1,219.51 | ||||
| Ending shares: | 1,219.51 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,586.71% | ||||
| Average annual return: | 15.17% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $168,703.25 | ||||
As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 15.17%. This would have turned a $10K investment made 20 years ago into $168,703.25 today (as of 09/06/2022). On a total return basis, that’s a result of 1,586.71% (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.]
More investment wisdom to ponder:
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” — George Soros
