“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a decade-long period?
Today, let’s look backwards in time to 2015, and take a look at what happened to investors who asked that very question about Caesars Entertainment Inc (NASD: CZR), by taking a look at the investment outcome over a decade-long holding period.
| Start date: | 05/12/2015 |
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| End date: | 05/09/2025 | ||||
| Start price/share: | $7.12 | ||||
| End price/share: | $28.03 | ||||
| Starting shares: | 1,404.49 | ||||
| Ending shares: | 1,404.49 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 293.68% | ||||
| Average annual return: | 14.69% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $39,378.17 | ||||
As shown above, the decade-long investment result worked out quite well, with an annualized rate of return of 14.69%. This would have turned a $10K investment made 10 years ago into $39,378.17 today (as of 05/09/2025). On a total return basis, that’s a result of 293.68% (something to think about: how might CZR shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“I think you have to learn that there’s a company behind every stock, and that there’s only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.” — Peter Lynch
