“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 longterm 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 Las Vegas Sands Corp (NYSE: LVS)? Today, we examine the outcome of a ten year investment into the stock back in 2014.
Start date:  01/22/2014 


End date:  01/19/2024  
Start price/share:  $80.47  
End price/share:  $48.85  
Starting shares:  124.27  
Ending shares:  168.92  
Dividends reinvested/share:  $17.67  
Total return:  17.48%  
Average annual return:  1.90%  
Starting investment:  $10,000.00  
Ending investment:  $8,254.92 
The above analysis shows the ten year investment result worked out poorly, with an annualized rate of return of 1.90%. This would have turned a $10K investment made 10 years ago into $8,254.92 today (as of 01/19/2024). On a total return basis, that’s a result of 17.48% (something to think about: how might LVS shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Notice that Las Vegas Sands Corp paid investors a total of $17.67/share in dividends over the 10 holding period, marking a second component of the total return beyond share price change alone. Much like watering a tree, reinvesting dividends can help an investment to grow over time — for the above calculations we assume dividend reinvestment (and for this exercise the closing price on exdate is used for the reinvestment of a given dividend).
Based upon the most recent annualized dividend rate of .8/share, we calculate that LVS has a current yield of approximately 1.64%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of .8 against the original $80.47/share purchase price. This works out to a yield on cost of 2.04%.
One more investment quote to leave you with:
“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” — Warren Buffett