“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The investment philosophy practiced by Warren Buffett calls for investors to take a long-term horizon when making an investment, such as a two-decade holding period (or even longer), and reconsider making the investment in the first place if unable to envision holding the stock for at least five years. Today, we look at how such a long-term strategy would have done for investors in Centene Corp (NYSE: CNC) back in 2004, holding through to today.
| Start date: | 01/12/2004 |
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| End date: | 01/10/2024 | ||||
| Start price/share: | $3.29 | ||||
| End price/share: | $78.41 | ||||
| Starting shares: | 3,039.51 | ||||
| Ending shares: | 3,039.51 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2,283.28% | ||||
| Average annual return: | 17.17% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $238,173.92 | ||||
As shown above, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 17.17%. This would have turned a $10K investment made 20 years ago into $238,173.92 today (as of 01/10/2024). On a total return basis, that’s a result of 2,283.28% (something to think about: how might CNC shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“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
