“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Mettler-Toledo International, Inc. (NYSE: MTD)? Today, we examine the outcome of a five year investment into the stock back in 2018.
| Start date: | 06/08/2018 |
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| End date: | 06/07/2023 | ||||
| Start price/share: | $594.86 | ||||
| End price/share: | $1,327.64 | ||||
| Starting shares: | 16.81 | ||||
| Ending shares: | 16.81 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 123.19% | ||||
| Average annual return: | 17.42% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $22,320.83 | ||||
As we can see, the five year investment result worked out exceptionally well, with an annualized rate of return of 17.42%. This would have turned a $10K investment made 5 years ago into $22,320.83 today (as of 06/07/2023). On a total return basis, that’s a result of 123.19% (something to think about: how might MTD shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized.” — John Neff
