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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 2003.

Start date: 01/27/2003


End date: 01/25/2023
Start price/share: $51.31
End price/share: $118.59
Starting shares: 194.89
Ending shares: 194.89
Dividends reinvested/share: $0.00
Total return: 131.12%
Average annual return: 4.28%
Starting investment: $10,000.00
Ending investment: $23,129.70

The above analysis shows the twenty year investment result worked out as follows, with an annualized rate of return of 4.28%. This would have turned a $10K investment made 20 years ago into $23,129.70 today (as of 01/25/2023). On a total return basis, that’s a result of 131.12% (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:
“It’s not how much money you make, but how much money you keep.” — Robert Kiyosaki