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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a five year holding period for an investor who was considering Mettler-Toledo International, Inc. (NYSE: MTD) back in 2014, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 05/22/2014


End date: 05/21/2019
Start price/share: $243.00
End price/share: $716.50
Starting shares: 41.15
Ending shares: 41.15
Dividends reinvested/share: $0.00
Total return: 194.86%
Average annual return: 24.14%
Starting investment: $10,000.00
Ending investment: $29,482.12

As we can see, the five year investment result worked out exceptionally well, with an annualized rate of return of 24.14%. This would have turned a $10K investment made 5 years ago into $29,482.12 today (as of 05/21/2019). On a total return basis, that’s a result of 194.86% (something to think about: how might MTD shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“The right time for a company to finance its growth is not when it needs capital, but rather when the market is most receptive to providing capital.” — Michael Milken