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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: 11/11/2002


End date: 11/10/2022
Start price/share: $52.39
End price/share: $102.44
Starting shares: 190.88
Ending shares: 190.88
Dividends reinvested/share: $0.00
Total return: 95.53%
Average annual return: 3.41%
Starting investment: $10,000.00
Ending investment: $19,561.87

The above analysis shows 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 $19,561.87 today (as of 11/10/2022). On a total return basis, that’s a result of 95.53% (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.]

Another great investment quote to think about:
“History provides a crucial insight regarding market crises: they are inevitable, painful and ultimately surmountable.” — Shelby Davis