“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Molina Healthcare Inc (NYSE: MOH)? Today, we examine the outcome of a decade-long investment into the stock back in 2012.
| Start date: | 09/07/2012 |
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| End date: | 09/06/2022 | ||||
| Start price/share: | $24.53 | ||||
| End price/share: | $338.69 | ||||
| Starting shares: | 407.66 | ||||
| Ending shares: | 407.66 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,280.72% | ||||
| Average annual return: | 30.01% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $138,063.81 | ||||
The above analysis shows the decade-long investment result worked out exceptionally well, with an annualized rate of return of 30.01%. This would have turned a $10K investment made 10 years ago into $138,063.81 today (as of 09/06/2022). On a total return basis, that’s a result of 1,280.72% (something to think about: how might MOH shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“Buy not on optimism, but on arithmetic.” — Benjamin Graham
