Photo credit:

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 2001.

Start date: 01/22/2001


End date: 01/20/2021
Start price/share: $6.13
End price/share: $198.65
Starting shares: 1,631.32
Ending shares: 1,631.32
Dividends reinvested/share: $0.00
Total return: 3,140.62%
Average annual return: 18.99%
Starting investment: $10,000.00
Ending investment: $324,212.63

The above analysis shows the two-decade investment result worked out exceptionally well, with an annualized rate of return of 18.99%. This would have turned a $10K investment made 20 years ago into $324,212.63 today (as of 01/20/2021). On a total return basis, that’s a result of 3,140.62% (something to think about: how might FFIV shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“If you’re looking for a home run, a great investment for five years or 10 years or more, then the only way to beat this enormous fog that covers the future is to identify a long-term trend that will give a particular business some sort of edge.” — Ralph Wanger