“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a decade-long 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 decade-long investment into the stock back in 2013.
| Start date: | 11/15/2013 |
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| End date: | 11/14/2023 | ||||
| Start price/share: | $144.68 | ||||
| End price/share: | $86.73 | ||||
| Starting shares: | 69.12 | ||||
| Ending shares: | 69.12 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -40.05% | ||||
| Average annual return: | -4.99% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $5,992.83 | ||||
As shown above, the decade-long investment result worked out poorly, with an annualized rate of return of -4.99%. This would have turned a $10K investment made 10 years ago into $5,992.83 today (as of 11/14/2023). On a total return basis, that’s a result of -40.05% (something to think about: how might MHK shares perform over the next 10 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
