Buy and Hold Strategy for GOOGL (Alphabet Inc.)

The strategy spanned a total of 7575 days, covering the full period from 2004-08-19 to 2025-05-16. This range represents all available trading data we could find — likely from the stock's initial listing date up to the most recent trading day.

Performance Overview

Starting with an initial capital of $10000, we purchased shares of GOOGL on 2004-08-19, at a price of $2.5 per share (adjusted for splits and dividends). No trading, no tinkering — just a simple buy-and-hold approach.

We held the position continuously through every market twist and turn, never selling. As of 2025-05-16, the price of GOOGL had risen to $166.19. While we didn't sell, we can still assess the performance by calculating the current value of the investment: $665009.31.

This translates into an annualized return of 22.43% over the entire period. This is a very strong return — significantly above the historical average of major indices like the S&P 500. It often signals a well-timed entry into a high-growth phase.

Drawdown and Risk

The maximum drawdown recorded during this period was 65.29%. This drawdown began after a peak price of $18.47 on 2007-11-06, and reached its lowest point on 2008-11-24 when the price fell to $6.41. The drawdown lasted for 384 days.

The drawdown was substantial, though not uncommon for long-term equity strategies that span full market cycles. This level suggests exposure to significant corrections or crashes. The maximum drawdown lasted over a year, indicating an extended period of underperformance. This duration is typical of major corrections or bear markets.

The return-to-risk ratio, known as the Calmar Ratio, is 0.34. This metric is calculated by dividing the annualized return by the maximum drawdown, both expressed as percentages. It helps assess how efficiently the strategy converted risk into reward.

A moderate return-to-risk profile. The strategy handled risk reasonably well while delivering decent returns.