“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 DaVita Inc (NYSE: DVA)? Today, we examine the outcome of a decade-long investment into the stock back in 2013.
| Start date: | 10/11/2013 |
|
|||
| End date: | 10/10/2023 | ||||
| Start price/share: | $57.95 | ||||
| End price/share: | $91.28 | ||||
| Starting shares: | 172.56 | ||||
| Ending shares: | 172.56 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 57.52% | ||||
| Average annual return: | 4.65% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,756.02 | ||||
As shown above, the decade-long investment result worked out as follows, with an annualized rate of return of 4.65%. This would have turned a $10K investment made 10 years ago into $15,756.02 today (as of 10/10/2023). On a total return basis, that’s a result of 57.52% (something to think about: how might DVA shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“Based on my own personal experience, both as an investor in recent years and an expert witness in years past, rarely do more than three or four variables really count. Everything else is noise.” — Martin Whitman
