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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2018.

Start date: 02/14/2018


End date: 02/13/2023
Start price/share: $253.50
End price/share: $119.75
Starting shares: 39.45
Ending shares: 39.45
Dividends reinvested/share: $0.00
Total return: -52.76%
Average annual return: -13.93%
Starting investment: $10,000.00
Ending investment: $4,723.45

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -13.93%. This would have turned a $10K investment made 5 years ago into $4,723.45 today (as of 02/13/2023). On a total return basis, that’s a result of -52.76% (something to think about: how might MHK shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“Go for a business that any idiot can run – because sooner or later, any idiot probably is going to run it.” — Peter Lynch