“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten 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 ten year investment into the stock back in 2011.
| Start date: | 03/23/2011 |
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| End date: | 03/22/2021 | ||||
| Start price/share: | $9.50 | ||||
| End price/share: | $89.05 | ||||
| Starting shares: | 1,052.63 | ||||
| Ending shares: | 1,052.63 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 837.37% | ||||
| Average annual return: | 25.07% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $93,769.98 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 25.07%. This would have turned a $10K investment made 10 years ago into $93,769.98 today (as of 03/22/2021). On a total return basis, that’s a result of 837.37% (something to think about: how might MNST 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:
“Buy not on optimism, but on arithmetic.” — Benjamin Graham
