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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— 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 2003.

Start date: 01/27/2003


End date: 01/25/2023
Start price/share: $7.51
End price/share: $149.56
Starting shares: 1,331.56
Ending shares: 1,331.56
Dividends reinvested/share: $0.00
Total return: 1,891.48%
Average annual return: 16.13%
Starting investment: $10,000.00
Ending investment: $199,261.00

As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 16.13%. This would have turned a $10K investment made 20 years ago into $199,261.00 today (as of 01/25/2023). On a total return basis, that’s a result of 1,891.48% (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:
“Investors should purchase stocks like they purchase groceries, not like they purchase perfume.” — Benjamin Graham