“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Mettler-Toledo International, Inc. (NYSE: MTD)? Today, we examine the outcome of a two-decade investment into the stock back in 1999.
| Start date: | 06/24/1999 |
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| End date: | 06/21/2019 | ||||
| Start price/share: | $26.25 | ||||
| End price/share: | $830.11 | ||||
| Starting shares: | 380.95 | ||||
| Ending shares: | 380.95 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,062.32% | ||||
| Average annual return: | 18.84% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $315,982.93 | ||||
As we can see, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 18.84%. This would have turned a $10K investment made 20 years ago into $315,982.93 today (as of 06/21/2019). On a total return basis, that’s a result of 3,062.32% (something to think about: how might MTD shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“Though tempting, trying to time the market is a loser’s game.” — Christopher Davis
