“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 twenty year 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 twenty year investment into the stock back in 1999.
| Start date: | 07/26/1999 |
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| End date: | 07/23/2019 | ||||
| Start price/share: | $29.50 | ||||
| End price/share: | $818.31 | ||||
| Starting shares: | 338.98 | ||||
| Ending shares: | 338.98 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2,673.93% | ||||
| Average annual return: | 18.07% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $277,451.16 | ||||
As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 18.07%. This would have turned a $10K investment made 20 years ago into $277,451.16 today (as of 07/23/2019). On a total return basis, that’s a result of 2,673.93% (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.]
More investment wisdom to ponder:
“The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you’re wrong.” — William O’Neil
