“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 ten 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 ten year investment into the stock back in 2014.
| Start date: | 03/04/2014 |
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| End date: | 03/01/2024 | ||||
| Start price/share: | $142.36 | ||||
| End price/share: | $121.41 | ||||
| Starting shares: | 70.24 | ||||
| Ending shares: | 70.24 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -14.72% | ||||
| Average annual return: | -1.58% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $8,527.73 | ||||
As we can see, the ten year investment result worked out poorly, with an annualized rate of return of -1.58%. This would have turned a $10K investment made 10 years ago into $8,527.73 today (as of 03/01/2024). On a total return basis, that’s a result of -14.72% (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.]
One more investment quote to leave you with:
“The policy of being too cautious is the greatest risk of all.” — Jawaharlal Nehru
