“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 |
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| 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
