“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
