“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 |
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| 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
