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“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
$10,000

01/18/2000
$203,687

01/15/2020
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