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“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 Mohawk Industries, Inc. (NYSE: MHK)? Today, we examine the outcome of a ten year investment into the stock back in 2009.

Start date: 08/28/2009
$10,000

08/28/2009
$22,139

08/27/2019
End date: 08/27/2019
Start price/share: $50.83
End price/share: $112.58
Starting shares: 196.73
Ending shares: 196.73
Dividends reinvested/share: $0.00
Total return: 121.48%
Average annual return: 8.27%
Starting investment: $10,000.00
Ending investment: $22,139.91

The above analysis shows the ten year investment result worked out well, with an annualized rate of return of 8.27%. This would have turned a $10K investment made 10 years ago into $22,139.91 today (as of 08/27/2019). On a total return basis, that’s a result of 121.48% (something to think about: how might MHK shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” — Peter Lynch