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“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