“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Dollar Tree Inc (NASD: DLTR)? Today, we examine the outcome of a two-decade investment into the stock back in 2004.
| Start date: | 05/17/2004 |
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| End date: | 05/14/2024 | ||||
| Start price/share: | $8.31 | ||||
| End price/share: | $118.88 | ||||
| Starting shares: | 1,203.37 | ||||
| Ending shares: | 1,203.37 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,330.57% | ||||
| Average annual return: | 14.22% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $142,941.89 | ||||
As we can see, the two-decade investment result worked out quite well, with an annualized rate of return of 14.22%. This would have turned a $10K investment made 20 years ago into $142,941.89 today (as of 05/14/2024). On a total return basis, that’s a result of 1,330.57% (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.]
Another great investment quote to think about:
“All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.” — Peter Lynch
