Key Takeaways

• Home Depot co-founder Ken Langone said on a Sept. 22 podcast that he expects Eli Lilly to be a $2,000 stock within three or four years.
• From about $1,200 a share, that’s roughly 67% upside, or about 14% to 19% a year depending on the timeline.
• If the valuation multiple holds, earnings have to grow at that same pace. If the multiple shrinks, earnings have to grow even faster.

Ken Langone knows a thing or two about long-term compounders. He co-founded Home Depot (HD), after all.

So when he says a different stock might overtake Home Depot in his portfolio, I pay attention.

On last Tuesday’s episode of CNBC’s Squawk Pod, Langone credited Eli Lilly (LLY) with never throttling back on research. “And…