“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 Live Nation Entertainment Inc (NYSE: LYV)? Today, we examine the outcome of a ten year investment into the stock back in 2012.
| Start date: | 04/02/2012 |
|
|||
| End date: | 03/30/2022 | ||||
| Start price/share: | $9.35 | ||||
| End price/share: | $117.76 | ||||
| Starting shares: | 1,069.52 | ||||
| Ending shares: | 1,069.52 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,159.47% | ||||
| Average annual return: | 28.84% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $125,952.17 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 28.84%. This would have turned a $10K investment made 10 years ago into $125,952.17 today (as of 03/30/2022). On a total return basis, that’s a result of 1,159.47% (something to think about: how might LYV shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Smart investing doesn’t consist of buying good assets but of buying assets well. This is a very, very important distinction that very, very few people understand.” — Howard Marks
