“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 2021.
| Start date: | 02/19/2021 |
|
|||
| End date: | 02/18/2026 | ||||
| Start price/share: | $107.90 | ||||
| End price/share: | $132.54 | ||||
| Starting shares: | 92.68 | ||||
| Ending shares: | 92.68 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 22.84% | ||||
| Average annual return: | 4.20% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $12,283.97 | ||||
As we can see, the five year investment result worked out as follows, with an annualized rate of return of 4.20%. This would have turned a $10K investment made 5 years ago into $12,283.97 today (as of 02/18/2026). On a total return basis, that’s a result of 22.84% (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.]
Another great investment quote to think about:
“In investing, what is comfortable is rarely profitable.” — Robert Arnott
