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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 Mohawk Industries, Inc. (NYSE: MHK)? Today, we examine the outcome of a five year investment into the stock back in 2014.

Start date: 05/12/2014


End date: 05/09/2019
Start price/share: $139.44
End price/share: $132.84
Starting shares: 71.72
Ending shares: 71.72
Dividends reinvested/share: $0.00
Total return: -4.73%
Average annual return: -0.97%
Starting investment: $10,000.00
Ending investment: $9,524.83

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -0.97%. This would have turned a $10K investment made 5 years ago into $9,524.83 today (as of 05/09/2019). On a total return basis, that’s a result of -4.73% (something to think about: how might MHK shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.” — Warren Buffett