“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: | 07/13/2016 |
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| End date: | 07/12/2021 | ||||
| Start price/share: | $56.86 | ||||
| End price/share: | $115.55 | ||||
| Starting shares: | 175.87 | ||||
| Ending shares: | 175.87 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 103.22% | ||||
| Average annual return: | 15.24% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $20,324.33 | ||||
As we can see, the five year investment result worked out exceptionally well, with an annualized rate of return of 15.24%. This would have turned a $10K investment made 5 years ago into $20,324.33 today (as of 07/12/2021). On a total return basis, that’s a result of 103.22% (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 piece of investment wisdom to leave you with:
“In investing, what is comfortable is rarely profitable.” — Robert Arnott
