“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Monster Beverage Corp (NASD: MNST)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 04/02/2015 |
|
|||
| End date: | 04/01/2020 | ||||
| Start price/share: | $45.22 | ||||
| End price/share: | $53.10 | ||||
| Starting shares: | 221.14 | ||||
| Ending shares: | 221.14 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 17.43% | ||||
| Average annual return: | 3.26% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $11,740.83 | ||||
As we can see, the five year investment result worked out as follows, with an annualized rate of return of 3.26%. This would have turned a $10K investment made 5 years ago into $11,740.83 today (as of 04/01/2020). On a total return basis, that’s a result of 17.43% (something to think about: how might MNST shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing.” — David Tepper
