Long-Term Investing Calculator
The power of long-term investing comes from the compounding of wealth over time.
Each year your gains from previous years will compound along with your principal. Over time this results in phenomenal capital growth.
Just how much will your investment account grow?
Obviously predicting the future is impossible (trust me, I’ve tried). You can however estimate future wealth growth using just a few assumptions.
To calculate the long-term value of an investment, use the quick and easy Excel spreadsheet calculator below.
Click Here to Download the Long Term Investing Calculator
The calculator uses dividend yield and expected growth rate to calculate the long-term total returns of an investment.
Long-Term Investing Examples from Warren Buffett
Warren Buffett’s investment history is perhaps the best example of long-term investments.
So how long does Buffett actually hold his stocks?
He has held his longest investment (AXP) for more than 50 years. The holding periods of 3 of Buffett’s longest holdings are below:
– Wells Fargo (WFC) – First purchased in 1989
– Coca-Cola (KO) – First purchased in 1988
– American Express (AXP) – First purchased in 1964
8 Long-Term Dividend Stocks
The Sure Dividend system is specifically designed to find high quality dividend growth stocks suitable for long-term investors.
Sure Dividend uses The 8 Rules of Dividend Investing to identify high quality dividend growth stocks trading at fair or better prices.
A brief list of blue-chip stocks worthy of long-term investors that are currently trading at fair or better prices is below.
One for each sector of the economy is shown:
– Basic Materials: Phillips 66 (PSX)
– Consumer Goods: General Mills (GIS)
– Health Care: Johnson & Johnson (JNJ)
– Industrial Goods: Deere & Company (DE)
– Service: W.W. Grainger (GWW)
– Technologies: Verizon Wireless (VZ)
– Utilities: Southern Company (SO)
Slow Changing Industries for Long-Term Investors
The biggest risk in investing is that the business you invest in goes bankrupt.
This is a 100% loss of your investment.
Progress inevitably leads toward changes in the market. Old business models fail, and new models succeed.
Not all industries are created equally, however. There are some industries that change much slower than others. These industries are best suited for long-term investing.
The entire consumer staples sector is ripe for long-term investing. Food and beverage companies in particular are able to maintain their competitive advantages almost indefinitely.
People will always need to eat and drink.
8 out of 50 (16%) Dividend Aristocrats are in the food and beverage industry.
– McDonald’s (MCD)
– Hormel Foods (HRL)
– Brown-Forman (BF.B)
– McCormick & Co. (MKC)
