“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 Bunge Global SA (NYSE: BG)? Today, we examine the outcome of a ten year investment into the stock back in 2015.
| Start date: | 10/28/2015 |
|
|||
| End date: | 10/27/2025 | ||||
| Start price/share: | $79.12 | ||||
| End price/share: | $96.42 | ||||
| Starting shares: | 126.39 | ||||
| Ending shares: | 169.44 | ||||
| Dividends reinvested/share: | $21.37 | ||||
| Total return: | 63.37% | ||||
| Average annual return: | 5.03% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $16,339.94 | ||||
As shown above, the ten year investment result worked out well, with an annualized rate of return of 5.03%. This would have turned a $10K investment made 10 years ago into $16,339.94 today (as of 10/27/2025). On a total return basis, that’s a result of 63.37% (something to think about: how might BG shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Notice that Bunge Global SA paid investors a total of $21.37/share in dividends over the 10 holding period, marking a second component of the total return beyond share price change alone. Much like watering a tree, reinvesting dividends can help an investment to grow over time — for the above calculations we assume dividend reinvestment (and for this exercise the closing price on ex-date is used for the reinvestment of a given dividend).
Based upon the most recent annualized dividend rate of 2.8/share, we calculate that BG has a current yield of approximately 2.90%. Another interesting datapoint we can examine is ‘yield on cost’ — in other words, we can express the current annualized dividend of 2.8 against the original $79.12/share purchase price. This works out to a yield on cost of 3.67%.
One more piece of investment wisdom to leave you with:
“We ignore outlooks and forecasts… we’re lousy at it and we admit it … everyone else is lousy too, but most people won’t admit it.” — Martin Whitman