“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.
|Average annual return:||20.84%|
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