“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 2019.
| Start date: | 04/29/2019 |
|
|||
| End date: | 04/26/2024 | ||||
| Start price/share: | $110.98 | ||||
| End price/share: | $121.74 | ||||
| Starting shares: | 90.11 | ||||
| Ending shares: | 90.11 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 9.70% | ||||
| Average annual return: | 1.87% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,970.07 | ||||
As we can see, the five year investment result worked out as follows, with an annualized rate of return of 1.87%. This would have turned a $10K investment made 5 years ago into $10,970.07 today (as of 04/26/2024). On a total return basis, that’s a result of 9.70% (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.]
Here’s one more great investment quote before you go:
“It’s not how much money you make, but how much money you keep.” — Robert Kiyosaki
