“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Centene Corp (NYSE: CNC)? Today, we examine the outcome of a ten year investment into the stock back in 2014.
| Start date: | 07/17/2014 |
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| End date: | 07/16/2024 | ||||
| Start price/share: | $19.50 | ||||
| End price/share: | $69.11 | ||||
| Starting shares: | 512.82 | ||||
| Ending shares: | 512.82 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 254.41% | ||||
| Average annual return: | 13.48% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $35,440.04 | ||||
The above analysis shows the ten year investment result worked out quite well, with an annualized rate of return of 13.48%. This would have turned a $10K investment made 10 years ago into $35,440.04 today (as of 07/16/2024). On a total return basis, that’s a result of 254.41% (something to think about: how might CNC shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“The individual investor should act consistently as an investor and not as a speculator. This means that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money’s worth for his purchase.” — Benjamin Graham
