“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— 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 Booking Holdings Inc (NASD: BKNG)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 09/09/1999 |
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| End date: | 09/06/2019 | ||||
| Start price/share: | $58.16 | ||||
| End price/share: | $1,967.63 | ||||
| Starting shares: | 171.95 | ||||
| Ending shares: | 171.95 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,283.35% | ||||
| Average annual return: | 19.25% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $338,521.85 | ||||
As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 19.25%. This would have turned a $10K investment made 20 years ago into $338,521.85 today (as of 09/06/2019). On a total return basis, that’s a result of 3,283.35% (something to think about: how might BKNG shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Another great investment quote to think about:
“Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert.” — Peter Lynch
