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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

Investors can learn a lot from Warren Buffett, whose above quote teaches the importance of thinking about investment time horizon, and asking ourselves before buying any given stock: can we envision holding onto it for years — even a five year holding period possibly?

Suppose a “buy-and-hold” investor was considering an investment into Centene Corp (NYSE: CNC) back in 2017: back then, such an investor may have been pondering this very same question. Had they answered “yes” to a full five year investment time horizon and then actually held for these past 5 years, here’s how that investment would have turned out.

Start date: 11/21/2017


End date: 11/18/2022
Start price/share: $46.96
End price/share: $82.68
Starting shares: 212.95
Ending shares: 212.95
Dividends reinvested/share: $0.00
Total return: 76.06%
Average annual return: 11.99%
Starting investment: $10,000.00
Ending investment: $17,604.62

As we can see, the five year investment result worked out quite well, with an annualized rate of return of 11.99%. This would have turned a $10K investment made 5 years ago into $17,604.62 today (as of 11/18/2022). On a total return basis, that’s a result of 76.06% (something to think about: how might CNC shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“All the opportunity in the world means nothing if you don’t actually pull the trigger.” — Sam Zell