Photo credit:

“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: 09/29/2014


End date: 09/26/2019
Start price/share: $119.16
End price/share: $139.74
Starting shares: 83.92
Ending shares: 83.92
Dividends reinvested/share: $0.00
Total return: 17.27%
Average annual return: 3.24%
Starting investment: $10,000.00
Ending investment: $11,726.38

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 3.24%. This would have turned a $10K investment made 5 years ago into $11,726.38 today (as of 09/26/2019). On a total return basis, that’s a result of 17.27% (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 piece of investment wisdom to leave you with:
“The four most dangerous words in investing are: ‘this time it’s different.'” — Sir John Templeton