Photo credit:

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a two-decade holding period for an investor who was considering F5 Networks, Inc. (NASD: FFIV) back in 1999, bought the stock, ignored the market’s ups and downs, and simply held through to today.

Start date: 06/07/1999


End date: 04/26/2019
Start price/share: $7.75
End price/share: $159.87
Starting shares: 1,290.32
Ending shares: 1,290.32
Dividends reinvested/share: $0.00
Total return: 1,962.84%
Average annual return: 16.43%
Starting investment: $10,000.00
Ending investment: $206,348.33

As shown above, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 16.43%. This would have turned a $10K investment made 20 years ago into $206,348.33 today (as of 04/26/2019). On a total return basis, that’s a result of 1,962.84% (something to think about: how might FFIV 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:
“I’d like to live as a poor man with lots of money.” — Pablo Picasso