“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 Dollar Tree Inc (NASD: DLTR)? Today, we examine the outcome of a ten year investment into the stock back in 2015.
| Start date: | 03/17/2015 |
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| End date: | 03/14/2025 | ||||
| Start price/share: | $83.32 | ||||
| End price/share: | $64.56 | ||||
| Starting shares: | 120.02 | ||||
| Ending shares: | 120.02 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -22.52% | ||||
| Average annual return: | -2.52% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $7,747.39 | ||||
The above analysis shows the ten year investment result worked out poorly, with an annualized rate of return of -2.52%. This would have turned a $10K investment made 10 years ago into $7,747.39 today (as of 03/14/2025). On a total return basis, that’s a result of -22.52% (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 piece of investment wisdom to leave you with:
“The older I get, the more I see a straight path where I want to go. If you’re going to hunt elephants, don’t get off the trail for a rabbit.” — T. Boone Pickens
