“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 |
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| 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
