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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten 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 ten year investment into the stock back in 2010.

Start date: 11/22/2010


End date: 11/19/2020
Start price/share: $49.95
End price/share: $101.50
Starting shares: 200.20
Ending shares: 200.20
Dividends reinvested/share: $0.00
Total return: 103.20%
Average annual return: 7.35%
Starting investment: $10,000.00
Ending investment: $20,324.53

The above analysis shows the ten year investment result worked out well, with an annualized rate of return of 7.35%. This would have turned a $10K investment made 10 years ago into $20,324.53 today (as of 11/19/2020). On a total return basis, that’s a result of 103.20% (something to think about: how might AKAM shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“The right time for a company to finance its growth is not when it needs capital, but rather when the market is most receptive to providing capital.” — Michael Milken