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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 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


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