“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 decade-long 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 decade-long investment into the stock back in 2011.
| Start date: | 07/27/2011 |
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| End date: | 07/26/2021 | ||||
| Start price/share: | $29.48 | ||||
| End price/share: | $119.22 | ||||
| Starting shares: | 339.21 | ||||
| Ending shares: | 339.21 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 304.41% | ||||
| Average annual return: | 14.99% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $40,451.36 | ||||
As shown above, the decade-long investment result worked out quite well, with an annualized rate of return of 14.99%. This would have turned a $10K investment made 10 years ago into $40,451.36 today (as of 07/26/2021). On a total return basis, that’s a result of 304.41% (something to think about: how might AKAM shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
Here’s one more great investment quote before you go:
“October is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” — Mark Twain
