“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 Norwegian Cruise Line Holdings Ltd (NYSE: NCLH)? Today, we examine the outcome of a decade-long investment into the stock back in 2015.
| Start date: | 05/14/2015 |
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| End date: | 05/13/2025 | ||||
| Start price/share: | $54.65 | ||||
| End price/share: | $19.34 | ||||
| Starting shares: | 182.98 | ||||
| Ending shares: | 182.98 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -64.61% | ||||
| Average annual return: | -9.86% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $3,539.39 | ||||
The above analysis shows the decade-long investment result worked out poorly, with an annualized rate of return of -9.86%. This would have turned a $10K investment made 10 years ago into $3,539.39 today (as of 05/13/2025). On a total return basis, that’s a result of -64.61% (something to think about: how might NCLH 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:
“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
