Photo credit:

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— 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 Molina Healthcare Inc (NYSE: MOH)? Today, we examine the outcome of a twenty year investment into the stock back in 2003.

Start date: 09/02/2003


End date: 08/31/2023
Start price/share: $15.53
End price/share: $310.12
Starting shares: 643.92
Ending shares: 643.92
Dividends reinvested/share: $0.00
Total return: 1,896.91%
Average annual return: 16.14%
Starting investment: $10,000.00
Ending investment: $199,604.59

As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 16.14%. This would have turned a $10K investment made 20 years ago into $199,604.59 today (as of 08/31/2023). On a total return basis, that’s a result of 1,896.91% (something to think about: how might MOH shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“All intelligent investing is value investing: acquiring more that you are paying for. You must value the business in order to value the stock.” — Charlie Munger