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“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 2010, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 04/30/2010


End date: 04/29/2020
Start price/share: $125.48
End price/share: $738.62
Starting shares: 79.69
Ending shares: 79.69
Dividends reinvested/share: $0.00
Total return: 488.64%
Average annual return: 19.38%
Starting investment: $10,000.00
Ending investment: $58,848.76

As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 19.38%. This would have turned a $10K investment made 10 years ago into $58,848.76 today (as of 04/29/2020). On a total return basis, that’s a result of 488.64% (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.]

Another great investment quote to think about:
“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” — Peter Lynch