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— Warren Buffett

A long holding period can materially change the outcome of an equity investment, particularly when capital appreciation is paired with dividend reinvestment. Expedia Group Inc (NASD: EXPE) offers a useful case study in long-term total return: an investor who committed capital in late 2006 and held for roughly twenty years would have seen a substantial increase in portfolio value.

The figures below show what happened to a hypothetical $10,000 investment in Expedia Group stock beginning on 11/13/2006 and held through 11/12/2026, assuming dividends were reinvested.

EXPE 20-Year Return Details

EXPE 20-Year Return Details
Start date:	11/13/2006	$10,000 11/13/2006   $137,391 11/12/2026
End date:	11/12/2026
Start price/share:	$33.20
End price/share:	$261.05
Starting shares:	301.20
Ending shares:	525.88
Dividends reinvested/share:	$27.36
Total return:	1,272.82%
Average annual return:	13.99%
Starting investment:	$10,000.00
Ending investment:	$137,391.00

The headline result is straightforward: $10,000 invested in Expedia Group in November 2006 would have grown to $137,391.00 by 11/12/2026, based on the assumptions above. That represents a total return of 1,272.82% and an annualized return of 13.99%. These figures were computed using the Dividend Channel DRIP Returns Calculator.

What Drove the Return

Two components explain the result: share price appreciation and reinvested dividends. Expedia Group’s share price in this example rose from $33.20 to $261.05, accounting for the majority of the gain. In addition, the calculation assumes that dividends were reinvested as paid, increasing the share count from 301.20 shares to 525.88 shares over the holding period.

That distinction matters. Price return alone reflects what happened to the stock quote. Total return captures both the stock’s price movement and the incremental shares accumulated through dividend reinvestment. Over long periods, even a modest dividend stream can meaningfully increase ending value when reinvested consistently.

A Quick Summary

• $10,000 became $137,391.00 over roughly 20 years.
• The investment generated a 1,272.82% total return.
• The annualized return was 13.99%.
• Reinvested dividends increased the share count from 301.20 to 525.88.
• Total dividends reinvested amounted to $27.36 per share over the period.

Dividend Yield and Yield on Cost

Based on the most recent annualized dividend rate of $1.92 per share, EXPE has a current yield of approximately 0.74%. Another useful lens is yield on cost, which compares the current annual dividend to the original purchase price rather than the current market price.

Using the original entry price of $33.20 per share, a $1.92 annual dividend equates to a yield on cost of 2.23%. This does not change the stock’s current market yield, but it helps illustrate how a rising dividend can enhance the income profile of a long-held position.

What the Example Shows

This Expedia Group return profile highlights a core feature of long-duration equity investing: strong outcomes are often the product of compounding over many years rather than short-term market timing. The path from 2006 to 2026 would not have been linear. A business tied to travel demand would have faced multiple economic cycles, shifts in consumer behavior, and periods of substantial market volatility. Yet over a full holding period, the combination of business performance, market revaluation, and reinvested cash distributions can produce a markedly different result than short-term price moves might suggest.

That is also why total return is the most useful measure in examples like this. It captures not just whether the stock went up, but how all cash flows associated with ownership contributed to the final value.

More investment wisdom to ponder:
“Investing is the intersection of economics and psychology.” — Seth Klarman