“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: | 12/01/2003 |
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| End date: | 11/29/2023 | ||||
| Start price/share: | $73.68 | ||||
| End price/share: | $87.80 | ||||
| Starting shares: | 135.72 | ||||
| Ending shares: | 135.72 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 19.16% | ||||
| Average annual return: | 0.88% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $11,916.06 | ||||
As shown above, the twenty year investment result worked out as follows, with an annualized rate of return of 0.88%. This would have turned a $10K investment made 20 years ago into $11,916.06 today (as of 11/29/2023). On a total return basis, that’s a result of 19.16% (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.]
One more piece of investment wisdom to leave you with:
“Sometimes buying early on the way down looks like being wrong, but it isn’t.” — Seth Klarman
