Photo credit:

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 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 ten year holding period for an investor who was considering Mettler-Toledo International, Inc. (NYSE: MTD) back in 2009, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 08/13/2009


End date: 08/12/2019
Start price/share: $86.69
End price/share: $681.78
Starting shares: 115.35
Ending shares: 115.35
Dividends reinvested/share: $0.00
Total return: 686.46%
Average annual return: 22.90%
Starting investment: $10,000.00
Ending investment: $78,661.85

As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 22.90%. This would have turned a $10K investment made 10 years ago into $78,661.85 today (as of 08/12/2019). On a total return basis, that’s a result of 686.46% (something to think about: how might MTD shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.” — Peter Lynch