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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 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: 08/29/2002


End date: 08/26/2022
Start price/share: $49.61
End price/share: $109.55
Starting shares: 201.57
Ending shares: 201.57
Dividends reinvested/share: $0.00
Total return: 120.82%
Average annual return: 4.04%
Starting investment: $10,000.00
Ending investment: $22,085.19

As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 4.04%. This would have turned a $10K investment made 20 years ago into $22,085.19 today (as of 08/26/2022). On a total return basis, that’s a result of 120.82% (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 piece of investment wisdom to leave you with:
“I made my money by selling too soon.” — Bernard Baruch