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“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


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