“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 2012.
| Start date: | 02/09/2012 |
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| End date: | 02/08/2022 | ||||
| Start price/share: | $376.49 | ||||
| End price/share: | $1,460.35 | ||||
| Starting shares: | 26.56 | ||||
| Ending shares: | 26.56 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 287.89% | ||||
| Average annual return: | 14.51% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $38,793.29 | ||||
As we can see, the ten year investment result worked out quite well, with an annualized rate of return of 14.51%. This would have turned a $10K investment made 10 years ago into $38,793.29 today (as of 02/08/2022). On a total return basis, that’s a result of 287.89% (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:
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” — George Soros
