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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 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 2014.

Start date: 02/26/2014


End date: 02/23/2024
Start price/share: $46.81
End price/share: $45.51
Starting shares: 213.63
Ending shares: 213.63
Dividends reinvested/share: $0.00
Total return: -2.78%
Average annual return: -0.28%
Starting investment: $10,000.00
Ending investment: $9,723.58

The above analysis shows the ten year investment result worked out poorly, with an annualized rate of return of -0.28%. This would have turned a $10K investment made 10 years ago into $9,723.58 today (as of 02/23/2024). On a total return basis, that’s a result of -2.78% (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.]

Another great investment quote to think about:
“The most important three words in investing is: “I don’t know.” If someone doesn’t say that to you then they are lying.” — James Altucher