Photo credit:

“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: 04/15/2014


End date: 04/12/2024
Start price/share: $41.98
End price/share: $41.80
Starting shares: 238.21
Ending shares: 238.21
Dividends reinvested/share: $0.00
Total return: -0.43%
Average annual return: -0.04%
Starting investment: $10,000.00
Ending investment: $9,960.07

As shown above, the ten year investment result worked out poorly, with an annualized rate of return of -0.04%. This would have turned a $10K investment made 10 years ago into $9,960.07 today (as of 04/12/2024). On a total return basis, that’s a result of -0.43% (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.]

Here’s one more great investment quote before you go:
“Smart investing doesn’t consist of buying good assets but of buying assets well. This is a very, very important distinction that very, very few people understand.” — Howard Marks