“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 Monster Beverage Corp (NASD: MNST)? Today, we examine the outcome of a five year investment into the stock back in 2020.
| Start date: | 08/04/2020 |
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| End date: | 08/01/2025 | ||||
| Start price/share: | $39.01 | ||||
| End price/share: | $59.02 | ||||
| Starting shares: | 256.34 | ||||
| Ending shares: | 256.34 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 51.29% | ||||
| Average annual return: | 8.64% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,126.96 | ||||
As we can see, the five year investment result worked out well, with an annualized rate of return of 8.64%. This would have turned a $10K investment made 5 years ago into $15,126.96 today (as of 08/01/2025). On a total return basis, that’s a result of 51.29% (something to think about: how might MNST shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“Value investing is at its core the marriage of a contrarian streak and a calculator.” — Seth Klarman
