“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 2001.
| Start date: | 06/07/2001 |
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| End date: | 06/04/2021 | ||||
| Start price/share: | $32.68 | ||||
| End price/share: | $201.41 | ||||
| Starting shares: | 306.00 | ||||
| Ending shares: | 306.00 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 516.31% | ||||
| Average annual return: | 9.52% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $61,671.58 | ||||
As we can see, the two-decade investment result worked out well, with an annualized rate of return of 9.52%. This would have turned a $10K investment made 20 years ago into $61,671.58 today (as of 06/04/2021). On a total return basis, that’s a result of 516.31% (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:
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” — Benjamin Graham
