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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

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


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