“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— 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 1999.
| Start date: | 12/10/1999 |
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| End date: | 12/09/2019 | ||||
| Start price/share: | $25.50 | ||||
| End price/share: | $138.88 | ||||
| Starting shares: | 392.16 | ||||
| Ending shares: | 392.16 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 444.63% | ||||
| Average annual return: | 8.84% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $54,472.06 | ||||
As we can see, the twenty year investment result worked out well, with an annualized rate of return of 8.84%. This would have turned a $10K investment made 20 years ago into $54,472.06 today (as of 12/09/2019). On a total return basis, that’s a result of 444.63% (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.]
Another great investment quote to think about:
“The policy of being too cautious is the greatest risk of all.” — Jawaharlal Nehru
