“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 2002.
| Start date: | 05/10/2002 |
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| End date: | 05/09/2022 | ||||
| Start price/share: | $64.24 | ||||
| End price/share: | $148.19 | ||||
| Starting shares: | 155.67 | ||||
| Ending shares: | 155.67 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 130.68% | ||||
| Average annual return: | 4.27% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $23,088.01 | ||||
As we can see, the twenty year investment result worked out as follows, with an annualized rate of return of 4.27%. This would have turned a $10K investment made 20 years ago into $23,088.01 today (as of 05/09/2022). On a total return basis, that’s a result of 130.68% (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:
“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.” — John Bogle
