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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 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


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