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“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 two-decade 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 two-decade investment into the stock back in 2001.

Start date: 12/17/2001


End date: 12/14/2021
Start price/share: $52.52
End price/share: $175.14
Starting shares: 190.40
Ending shares: 190.40
Dividends reinvested/share: $0.00
Total return: 233.47%
Average annual return: 6.21%
Starting investment: $10,000.00
Ending investment: $33,377.33

As we can see, the two-decade investment result worked out well, with an annualized rate of return of 6.21%. This would have turned a $10K investment made 20 years ago into $33,377.33 today (as of 12/14/2021). On a total return basis, that’s a result of 233.47% (something to think about: how might MHK 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:
“Behind every stock is a company. Find out what it’s doing.” — Peter Lynch