“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 ten year 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 ten year investment into the stock back in 2013.
| Start date: | 11/04/2013 |
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| End date: | 11/01/2023 | ||||
| Start price/share: | $35.85 | ||||
| End price/share: | $34.81 | ||||
| Starting shares: | 278.94 | ||||
| Ending shares: | 278.94 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -2.90% | ||||
| Average annual return: | -0.29% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $9,713.91 | ||||
As we can see, the ten year investment result worked out poorly, with an annualized rate of return of -0.29%. This would have turned a $10K investment made 10 years ago into $9,713.91 today (as of 11/01/2023). On a total return basis, that’s a result of -2.90% (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 piece of investment wisdom to leave you with:
“The most important thing about an investment philosophy is that you have one.” — David Booth
