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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 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 2005.

Start date: 02/03/2005
$10,000

02/03/2005
  $13,390

01/31/2025
End date: 01/31/2025
Start price/share: $91.40
End price/share: $122.30
Starting shares: 109.41
Ending shares: 109.41
Dividends reinvested/share: $0.00
Total return: 33.81%
Average annual return: 1.47%
Starting investment: $10,000.00
Ending investment: $13,390.23

As shown above, the two-decade investment result worked out as follows, with an annualized rate of return of 1.47%. This would have turned a $10K investment made 20 years ago into $13,390.23 today (as of 01/31/2025). On a total return basis, that’s a result of 33.81% (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 investment quote to leave you with:
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.” — Warren Buffett