“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.
|Average annual return:||-4.99%|
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