“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 2020.
| Start date: | 12/16/2020 |
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| End date: | 12/15/2025 | ||||
| Start price/share: | $200.65 | ||||
| End price/share: | $166.50 | ||||
| Starting shares: | 49.84 | ||||
| Ending shares: | 49.84 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -17.02% | ||||
| Average annual return: | -3.66% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $8,299.14 | ||||
As we can see, the five year investment result worked out poorly, with an annualized rate of return of -3.66%. This would have turned a $10K investment made 5 years ago into $8,299.14 today (as of 12/15/2025). On a total return basis, that’s a result of -17.02% (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.]
Here’s one more great investment quote before you go:
“Money is better than poverty, if only for financial reasons.” — Woody Allen
