“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into NVR Inc. (NYSE: NVR)? Today, we examine the outcome of a decade-long investment into the stock back in 2013.
| Start date: | 03/13/2013 |
|
|||
| End date: | 03/10/2023 | ||||
| Start price/share: | $1,035.00 | ||||
| End price/share: | $5,235.47 | ||||
| Starting shares: | 9.66 | ||||
| Ending shares: | 9.66 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 405.84% | ||||
| Average annual return: | 17.60% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $50,568.53 | ||||
As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 17.60%. This would have turned a $10K investment made 10 years ago into $50,568.53 today (as of 03/10/2023). On a total return basis, that’s a result of 405.84% (something to think about: how might NVR shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” — Jim Cramer
