“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 two-decade 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 two-decade investment into the stock back in 1999.
| Start date: | 10/25/1999 |
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| End date: | 10/24/2019 | ||||
| Start price/share: | $46.00 | ||||
| End price/share: | $145.94 | ||||
| Starting shares: | 217.39 | ||||
| Ending shares: | 217.39 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 217.26% | ||||
| Average annual return: | 5.94% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $31,730.29 | ||||
As shown above, the two-decade investment result worked out well, with an annualized rate of return of 5.94%. This would have turned a $10K investment made 20 years ago into $31,730.29 today (as of 10/24/2019). On a total return basis, that’s a result of 217.26% (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:
“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” — Warren Buffett
