
“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 |
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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