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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: 06/03/2019


End date: 05/31/2024
Start price/share: $145.13
End price/share: $314.58
Starting shares: 68.90
Ending shares: 68.90
Dividends reinvested/share: $0.00
Total return: 116.76%
Average annual return: 16.74%
Starting investment: $10,000.00
Ending investment: $21,672.76

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 16.74%. This would have turned a $10K investment made 5 years ago into $21,672.76 today (as of 05/31/2024). On a total return basis, that’s a result of 116.76% (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.]

One more piece of investment wisdom to leave you with:
“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” — Oscar Wilde