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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a five year holding period for an investor who was considering Centene Corp (NYSE: CNC) back in 2014, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 09/05/2014
$10,000

09/05/2014
$23,425

09/04/2019
End date: 09/04/2019
Start price/share: $19.47
End price/share: $45.61
Starting shares: 513.61
Ending shares: 513.61
Dividends reinvested/share: $0.00
Total return: 134.26%
Average annual return: 18.56%
Starting investment: $10,000.00
Ending investment: $23,425.61

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 18.56%. This would have turned a $10K investment made 5 years ago into $23,425.61 today (as of 09/04/2019). On a total return basis, that’s a result of 134.26% (something to think about: how might CNC shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” — Jim Cramer