“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 two-decade 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 two-decade investment into the stock back in 2004.
| Start date: | 11/15/2004 |
|
|||
| End date: | 11/14/2024 | ||||
| Start price/share: | $89.03 | ||||
| End price/share: | $140.34 | ||||
| Starting shares: | 112.32 | ||||
| Ending shares: | 112.32 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 57.63% | ||||
| Average annual return: | 2.30% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,762.35 | ||||
As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 2.30%. This would have turned a $10K investment made 20 years ago into $15,762.35 today (as of 11/14/2024). On a total return basis, that’s a result of 57.63% (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.]
Here’s one more great investment quote before you go:
“There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions.” — Joel Greenblatt
