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“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 2015.

Start date: 10/08/2015


End date: 10/07/2020
Start price/share: $118.93
End price/share: $127.63
Starting shares: 84.08
Ending shares: 84.08
Dividends reinvested/share: $0.00
Total return: 7.32%
Average annual return: 1.42%
Starting investment: $10,000.00
Ending investment: $10,730.87

The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 1.42%. This would have turned a $10K investment made 5 years ago into $10,730.87 today (as of 10/07/2020). On a total return basis, that’s a result of 7.32% (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:
“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” — Warren Buffett