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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

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2019.

Start date: 04/29/2019


End date: 04/26/2024
Start price/share: $128.73
End price/share: $342.23
Starting shares: 77.68
Ending shares: 77.68
Dividends reinvested/share: $0.00
Total return: 165.85%
Average annual return: 21.61%
Starting investment: $10,000.00
Ending investment: $26,583.59

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 21.61%. This would have turned a $10K investment made 5 years ago into $26,583.59 today (as of 04/26/2024). On a total return basis, that’s a result of 165.85% (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:
“Games are won by players who focus on the playing field, not by those whose eyes are glued to the scoreboard.” — Warren Buffett