Photo credit:

“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 Akamai Technologies Inc (NASD: AKAM)? Today, we examine the outcome of a twenty year investment into the stock back in 2000.

Start date: 07/10/2000


End date: 07/09/2020
Start price/share: $114.88
End price/share: $114.22
Starting shares: 87.05
Ending shares: 87.05
Dividends reinvested/share: $0.00
Total return: -0.57%
Average annual return: -0.03%
Starting investment: $10,000.00
Ending investment: $9,940.14

As shown above, the twenty year investment result worked out poorly, with an annualized rate of return of -0.03%. This would have turned a $10K investment made 20 years ago into $9,940.14 today (as of 07/09/2020). On a total return basis, that’s a result of -0.57% (something to think about: how might AKAM shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“The idea that a bell rings to signal when to get into or out of the stock market is simply not credible. After nearly fifty years in this business, I don’t know anybody who has done it successfully and consistently.” — Jack Bogle