“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into F5 Networks, Inc. (NASD: FFIV)? Today, we examine the outcome of a five year investment into the stock back in 2014.
| Start date: | 06/24/2014 |
|
|||
| End date: | 06/21/2019 | ||||
| Start price/share: | $109.46 | ||||
| End price/share: | $143.73 | ||||
| Starting shares: | 91.36 | ||||
| Ending shares: | 91.36 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 31.31% | ||||
| Average annual return: | 5.60% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,127.74 | ||||
As shown above, the five year investment result worked out well, with an annualized rate of return of 5.60%. This would have turned a $10K investment made 5 years ago into $13,127.74 today (as of 06/21/2019). On a total return basis, that’s a result of 31.31% (something to think about: how might FFIV shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Wide diversification is only required when investors do not understand what they are doing.” — Warren Buffett
