“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty 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 twenty year investment into the stock back in 2003.
| Start date: | 09/02/2003 |
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| End date: | 08/31/2023 | ||||
| Start price/share: | $15.53 | ||||
| End price/share: | $310.12 | ||||
| Starting shares: | 643.92 | ||||
| Ending shares: | 643.92 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,896.91% | ||||
| Average annual return: | 16.14% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $199,604.59 | ||||
As shown above, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 16.14%. This would have turned a $10K investment made 20 years ago into $199,604.59 today (as of 08/31/2023). On a total return basis, that’s a result of 1,896.91% (something to think about: how might MOH shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“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
