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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a twenty year period?

Today, let’s look backwards in time to 2003, and take a look at what happened to investors who asked that very question about Dollar Tree Inc (NASD: DLTR), by taking a look at the investment outcome over a twenty year holding period.

Start date: 12/08/2003


End date: 12/05/2023
Start price/share: $9.97
End price/share: $127.76
Starting shares: 1,003.01
Ending shares: 1,003.01
Dividends reinvested/share: $0.00
Total return: 1,181.44%
Average annual return: 13.60%
Starting investment: $10,000.00
Ending investment: $128,194.70

As we can see, the twenty year investment result worked out quite well, with an annualized rate of return of 13.60%. This would have turned a $10K investment made 20 years ago into $128,194.70 today (as of 12/05/2023). On a total return basis, that’s a result of 1,181.44% (something to think about: how might DLTR shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“If you can follow only one bit of data, follow the earnings.” — Peter Lynch