3-Year Backtest: Buy and Hold META (Meta Platforms, Inc.)

This analysis evaluates a buy-and-hold strategy over the past 3 years, providing a historical perspective on META's performance from 2022-07-05 to 2025-07-03.

Note: This simulation uses adjusted close prices, meaning all historical prices have been retroactively adjusted for splits and dividends. To achieve similar results in practice, you would need to reinvest all dividends automatically as they are paid.

Performance Overview

Starting with an initial capital of $10,000.00, we purchased shares of META on 2022-07-05, at a price of $167.27 per share (adjusted for splits and dividends). No trading, no adjustments — just a simple buy-and-hold approach.

We held the position continuously through every market twist and turn, never selling. As of 2025-07-03, the price of META had risen to $719.01. While we didn't sell, we can still assess the performance by calculating the current value of the investment: $42,984.39 — a total gain of 329.84%.

This translates into an annualized return of 62.72% over the entire period. This return is exceptionally high and rarely sustained over long periods. While it reflects extraordinary growth, such performance is often accompanied by substantial risk and volatility.

Drawdown and Risk

The maximum drawdown recorded during this period was 51.46%. This drawdown began after a peak price of $182.17 on 2022-07-21, and reached its lowest point on 2022-11-03 when the price fell to $88.42. The drawdown lasted for 105 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 three months, often seen in deeper corrections or extended periods of market stress.

The Calmar Ratio — annualized return divided by maximum drawdown — was 1.22, reflecting the tradeoff between return and volatility.

This is an excellent risk-adjusted return. A Calmar Ratio of 1.0 or higher is rare and indicates that the strategy generated strong returns relative to its worst drawdown.