“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Laboratory Corporation of America Holdings (NYSE: LH)? Today, we examine the outcome of a twenty year investment into the stock back in 2000.
| Start date: | 01/18/2000 |
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| End date: | 01/15/2020 | ||||
| Start price/share: | $8.75 | ||||
| End price/share: | $178.23 | ||||
| Starting shares: | 1,142.86 | ||||
| Ending shares: | 1,142.86 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,936.91% | ||||
| Average annual return: | 16.26% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $203,687.74 | ||||
As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 16.26%. This would have turned a $10K investment made 20 years ago into $203,687.74 today (as of 01/15/2020). On a total return basis, that’s a result of 1,936.91% (something to think about: how might LH shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“The person who starts simply with the idea of getting rich won’t succeed; you must have a larger ambition.” — John Rockefeller
