“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 United Airlines Holdings Inc (NASD: UAL)? Today, we examine the outcome of a decade-long investment into the stock back in 2013.
| Start date: | 05/20/2013 |
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| End date: | 05/18/2023 | ||||
| Start price/share: | $34.29 | ||||
| End price/share: | $48.13 | ||||
| Starting shares: | 291.63 | ||||
| Ending shares: | 291.63 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 40.36% | ||||
| Average annual return: | 3.45% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $14,037.99 | ||||
The above analysis shows the decade-long investment result worked out as follows, with an annualized rate of return of 3.45%. This would have turned a $10K investment made 10 years ago into $14,037.99 today (as of 05/18/2023). On a total return basis, that’s a result of 40.36% (something to think about: how might UAL shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“In investing, what is comfortable is rarely profitable.” — Robert Arnott
