“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— 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 Booking Holdings Inc (NASD: BKNG)? Today, we examine the outcome of a twenty year investment into the stock back in 2000.
| Start date: | 07/17/2000 |
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| End date: | 07/16/2020 | ||||
| Start price/share: | $39.56 | ||||
| End price/share: | $1,746.79 | ||||
| Starting shares: | 252.76 | ||||
| Ending shares: | 252.76 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 4,315.27% | ||||
| Average annual return: | 20.84% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $441,687.67 | ||||
As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 20.84%. This would have turned a $10K investment made 20 years ago into $441,687.67 today (as of 07/16/2020). On a total return basis, that’s a result of 4,315.27% (something to think about: how might BKNG shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“If you can follow only one bit of data, follow the earnings.” — Peter Lynch
