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“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


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