“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 decade-long 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 decade-long investment into the stock back in 2015.
| Start date: | 01/06/2015 |
|
|||
| End date: | 01/03/2025 | ||||
| Start price/share: | $68.67 | ||||
| End price/share: | $73.36 | ||||
| Starting shares: | 145.62 | ||||
| Ending shares: | 145.62 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 6.83% | ||||
| Average annual return: | 0.66% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,679.95 | ||||
The above analysis shows the decade-long investment result worked out as follows, with an annualized rate of return of 0.66%. This would have turned a $10K investment made 10 years ago into $10,679.95 today (as of 01/03/2025). On a total return basis, that’s a result of 6.83% (something to think about: how might DLTR shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.” — Benjamin Graham
