“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 twenty 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 twenty year investment into the stock back in 2002.
| Start date: | 04/08/2002 |
|
|||
| End date: | 04/05/2022 | ||||
| Start price/share: | $63.00 | ||||
| End price/share: | $123.29 | ||||
| Starting shares: | 158.73 | ||||
| Ending shares: | 158.73 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 95.70% | ||||
| Average annual return: | 3.41% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $19,558.28 | ||||
As we can see, the twenty year investment result worked out as follows, with an annualized rate of return of 3.41%. This would have turned a $10K investment made 20 years ago into $19,558.28 today (as of 04/05/2022). On a total return basis, that’s a result of 95.70% (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.]
Here’s one more great investment quote before you go:
“Finding the best person or the best organization to invest your money is one of the most important financial decisions you’ll ever make.” — Bill Gross
