“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— 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 F5 Networks, Inc. (NASD: FFIV)? Today, we examine the outcome of a twenty year investment into the stock back in 1999.
| Start date: | 07/09/1999 |
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| End date: | 07/08/2019 | ||||
| Start price/share: | $25.38 | ||||
| End price/share: | $142.01 | ||||
| Starting shares: | 394.01 | ||||
| Ending shares: | 394.01 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 459.54% | ||||
| Average annual return: | 8.99% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $55,994.16 | ||||
The above analysis shows the twenty year investment result worked out well, with an annualized rate of return of 8.99%. This would have turned a $10K investment made 20 years ago into $55,994.16 today (as of 07/08/2019). On a total return basis, that’s a result of 459.54% (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.]
Here’s one more great investment quote before you go:
“Buy not on optimism, but on arithmetic.” — Benjamin Graham
