“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 2004.
| Start date: | 12/20/2004 |
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| End date: | 12/18/2024 | ||||
| Start price/share: | $88.81 | ||||
| End price/share: | $119.10 | ||||
| Starting shares: | 112.60 | ||||
| Ending shares: | 112.60 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 34.11% | ||||
| Average annual return: | 1.48% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,417.19 | ||||
As we can see, the twenty year investment result worked out as follows, with an annualized rate of return of 1.48%. This would have turned a $10K investment made 20 years ago into $13,417.19 today (as of 12/18/2024). On a total return basis, that’s a result of 34.11% (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.]
Another great investment quote to think about:
“Cash combined with courage in a time of crisis is priceless.” — Warren Buffett
