“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 Chipotle Mexican Grill Inc (NYSE: CMG)? Today, we examine the outcome of a ten year investment into the stock back in 2011.
| Start date: | 12/27/2011 |
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| End date: | 12/23/2021 | ||||
| Start price/share: | $339.00 | ||||
| End price/share: | $1,748.67 | ||||
| Starting shares: | 29.50 | ||||
| Ending shares: | 29.50 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 415.83% | ||||
| Average annual return: | 17.83% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $51,566.01 | ||||
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 17.83%. This would have turned a $10K investment made 10 years ago into $51,566.01 today (as of 12/23/2021). On a total return basis, that’s a result of 415.83% (something to think about: how might CMG shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions.” — Joel Greenblatt
