“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2020.
| Start date: | 04/01/2020 |
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| End date: | 03/31/2025 | ||||
| Start price/share: | $72.94 | ||||
| End price/share: | $75.07 | ||||
| Starting shares: | 137.10 | ||||
| Ending shares: | 137.10 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2.92% | ||||
| Average annual return: | 0.58% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,293.38 | ||||
The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 0.58%. This would have turned a $10K investment made 5 years ago into $10,293.38 today (as of 03/31/2025). On a total return basis, that’s a result of 2.92% (something to think about: how might DLTR shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Searching for companies is like looking for grubs under rocks: if you turn over 10 rocks you’ll likely find one grub; if you turn over 20 rocks you’ll find two.” — Peter Lynch
