Friday, September 27, 2013

Successful Growth Investing Is For The Long-Term

As a followup to my last post, I thought I would provide readers with an idea of just how well one can do by investing in quality, growth stocks over the long-term. The best way that I know how to demonstrate this is to provide the returns I have generated on my long-term equity investments. I will start with the stocks that I have held the longest. The following is a list of the companies and their corresponding ticker symbols, along with the date of purchase and the percentage return generated (dividends are not included as I wish to illustrate stock appreciation only):

Under Armour, Inc. (UA) - 10/02/09 - 465.48%
MasterCard Inc. (MA) - 7/23/10 - 243.57%
Starbucks Corporation (SBUX) - 11/12/10 - 150.02%

Now, here is a list of the more recent additions to my long-term portfolio:

Discovery Communications Inc. (DISCA) - 1/10/13 - 23.95%
The Walt Disney Company (DIS) - 2/20/13 - 17.06%
Chipotle Mexican Grill, Inc. (CMG) - 5/13/13 - 32%
FleetCor Technologies, Inc. (FLT) - 6/18/13 - 28.67%
Boston Beer Co Inc. (SAM) - 8/02/13 - 42.69%

As you can see, my portfolio has really benefitted the most from the simple 'buy and hold' approach. However, what is not illustrated above are two important details; first is that some of the long-term gains have been trimmed over time only to be invested in other stocks, which has lead to a compounding effect (for example, I sold half of my original UA shares and bought my entire MA position with the proceeds) and second, I have not included stocks that I held for long periods of time only to fully divest myself of later (for example, I held shares of Las Vegas Sands Corp, ticker symbol LVS, and sold approximately one year later for roughly a 100% return).


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