“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The investment philosophy practiced by Warren Buffett calls for investors to take a long-term horizon when making an investment, such as a five year holding period (or even longer), and reconsider making the investment in the first place if unable to envision holding the stock for at least five years. Today, we look at how such a long-term strategy would have done for investors in Akamai Technologies Inc (NASD: AKAM) back in 2016, holding through to today.
|Average annual return:||15.40%|
As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 15.40%. This would have turned a $10K investment made 5 years ago into $20,449.76 today (as of 04/15/2021). On a total return basis, that’s a result of 104.50% (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.]
One more investment quote to leave you with:
“Wide diversification is only required when investors do not understand what they are doing.” — Warren Buffett