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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 2002.

Start date: 06/21/2002


End date: 06/17/2022
Start price/share: $65.32
End price/share: $119.93
Starting shares: 153.09
Ending shares: 153.09
Dividends reinvested/share: $0.00
Total return: 83.60%
Average annual return: 3.08%
Starting investment: $10,000.00
Ending investment: $18,345.28

As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 3.08%. This would have turned a $10K investment made 20 years ago into $18,345.28 today (as of 06/17/2022). On a total return basis, that’s a result of 83.60% (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:
“Investing is the intersection of economics and psychology.” — Seth Klarman