“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.
|Average annual return:||8.99%|
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