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“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