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“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


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