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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 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


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