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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

This inspiring quote from Warren Buffett teaches us the importance of considering our investment time horizon when approaching any given investment: Could we envision ourselves holding the stock we are considering for many years? Even a five year holding period potentially?

For “buy-and-hold” investors taking a long-term view, what’s important isn’t the short-term stock market fluctuations that will inevitably occur, but what happens over the long haul. Looking back 5 years to 2018, investors considering an investment into shares of Molina Healthcare Inc (NYSE: MOH) may have been pondering this very question and thinking about their potential investment result over a full five year time horizon. Here’s how that would have worked out.

Start date: 12/28/2018


End date: 12/27/2023
Start price/share: $113.66
End price/share: $356.83
Starting shares: 87.98
Ending shares: 87.98
Dividends reinvested/share: $0.00
Total return: 213.95%
Average annual return: 25.71%
Starting investment: $10,000.00
Ending investment: $31,394.18

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 25.71%. This would have turned a $10K investment made 5 years ago into $31,394.18 today (as of 12/27/2023). On a total return basis, that’s a result of 213.95% (something to think about: how might MOH shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“October is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” — Mark Twain