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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2016.

Start date: 03/18/2016


End date: 03/17/2021
Start price/share: $55.95
End price/share: $100.26
Starting shares: 178.73
Ending shares: 178.73
Dividends reinvested/share: $0.00
Total return: 79.20%
Average annual return: 12.37%
Starting investment: $10,000.00
Ending investment: $17,916.45

The above analysis shows the five year investment result worked out quite well, with an annualized rate of return of 12.37%. This would have turned a $10K investment made 5 years ago into $17,916.45 today (as of 03/17/2021). On a total return basis, that’s a result of 79.20% (something to think about: how might AKAM shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“Cash is a fact, profit is an opinion.” — Alfred Rappaport