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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 Norwegian Cruise Line Holdings Ltd (NYSE: NCLH)? Today, we examine the outcome of a decade-long investment into the stock back in 2013.

Start date: 11/29/2013


End date: 11/28/2023
Start price/share: $34.10
End price/share: $14.48
Starting shares: 293.26
Ending shares: 293.26
Dividends reinvested/share: $0.00
Total return: -57.54%
Average annual return: -8.21%
Starting investment: $10,000.00
Ending investment: $4,244.75

The above analysis shows the decade-long investment result worked out poorly, with an annualized rate of return of -8.21%. This would have turned a $10K investment made 10 years ago into $4,244.75 today (as of 11/28/2023). On a total return basis, that’s a result of -57.54% (something to think about: how might NCLH shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“Taking risks is really the only way to consistently achieve above-average returns.” — Sam Zell