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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 2016.

Start date: 06/28/2016


End date: 06/25/2021
Start price/share: $184.42
End price/share: $195.72
Starting shares: 54.22
Ending shares: 54.22
Dividends reinvested/share: $0.00
Total return: 6.13%
Average annual return: 1.20%
Starting investment: $10,000.00
Ending investment: $10,613.88

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 1.20%. This would have turned a $10K investment made 5 years ago into $10,613.88 today (as of 06/25/2021). On a total return basis, that’s a result of 6.13% (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.]

Another great investment quote to think about:
“Sometimes buying early on the way down looks like being wrong, but it isn’t.” — Seth Klarman