“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 2017.
|Average annual return:||-9.41%|
As we can see, the five year investment result worked out poorly, with an annualized rate of return of -9.41%. This would have turned a $10K investment made 5 years ago into $6,104.31 today (as of 02/24/2022). On a total return basis, that’s a result of -38.96% (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.]
More investment wisdom to ponder:
“The greater the passive income you can build, the freer you will become.” — Todd Fleming