“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 decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Meta Platforms Inc (NASD: META)? Today, we examine the outcome of a decade-long investment into the stock back in 2013.
| Start date: | 07/17/2013 |
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| End date: | 07/14/2023 | ||||
| Start price/share: | $26.65 | ||||
| End price/share: | $308.87 | ||||
| Starting shares: | 375.23 | ||||
| Ending shares: | 375.23 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,058.99% | ||||
| Average annual return: | 27.77% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $115,877.03 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 27.77%. This would have turned a $10K investment made 10 years ago into $115,877.03 today (as of 07/14/2023). On a total return basis, that’s a result of 1,058.99% (something to think about: how might META 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:
“Everyone has the brainpower to make money in stocks. Not everyone has the stomach. If you are susceptible to selling everything in a panic, you ought to avoid stocks and mutual funds altogether.” — Peter Lynch
