“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
Investors can learn a lot from Warren Buffett, whose above quote teaches the importance of thinking about investment time horizon, and asking ourselves before buying any given stock: can we envision holding onto it for years — even a decade-long holding period possibly?
Suppose a “buy-and-hold” investor was considering an investment into Live Nation Entertainment Inc (NYSE: LYV) back in 2015: back then, such an investor may have been pondering this very same question. Had they answered “yes” to a full decade-long investment time horizon and then actually held for these past 10 years, here’s how that investment would have turned out.
| Start date: | 08/14/2015 |
|
|||
| End date: | 08/13/2025 | ||||
| Start price/share: | $26.30 | ||||
| End price/share: | $158.87 | ||||
| Starting shares: | 380.23 | ||||
| Ending shares: | 380.23 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 504.07% | ||||
| Average annual return: | 19.69% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $60,395.75 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 19.69%. This would have turned a $10K investment made 10 years ago into $60,395.75 today (as of 08/13/2025). On a total return basis, that’s a result of 504.07% (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:
“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.” — Benjamin Graham
