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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 two-decade 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 two-decade investment into the stock back in 2003.

Start date: 03/17/2003


End date: 03/15/2023
Start price/share: $45.04
End price/share: $94.54
Starting shares: 222.02
Ending shares: 222.02
Dividends reinvested/share: $0.00
Total return: 109.90%
Average annual return: 3.78%
Starting investment: $10,000.00
Ending investment: $21,006.88

The above analysis shows the two-decade investment result worked out as follows, with an annualized rate of return of 3.78%. This would have turned a $10K investment made 20 years ago into $21,006.88 today (as of 03/15/2023). On a total return basis, that’s a result of 109.90% (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.]

Here’s one more great investment quote before you go:
“As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.” — Benjamin Graham