“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 F5 Networks, Inc. (NASD: FFIV)? Today, we examine the outcome of a ten year investment into the stock back in 2010.
| Start date: | 12/29/2010 |
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| End date: | 12/28/2020 | ||||
| Start price/share: | $133.68 | ||||
| End price/share: | $176.44 | ||||
| Starting shares: | 74.81 | ||||
| Ending shares: | 74.81 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 31.99% | ||||
| Average annual return: | 2.81% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,195.31 | ||||
As shown above, the ten year investment result worked out as follows, with an annualized rate of return of 2.81%. This would have turned a $10K investment made 10 years ago into $13,195.31 today (as of 12/28/2020). On a total return basis, that’s a result of 31.99% (something to think about: how might FFIV shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.” — Benjamin Graham
