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“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


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