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“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


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