“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a twenty year period?
Today, let’s look backwards in time to 2001, and take a look at what happened to investors who asked that very question about F5 Networks, Inc. (NASD: FFIV), by taking a look at the investment outcome over a twenty year holding period.
|Average annual return:||17.44%|
As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 17.44%. This would have turned a $10K investment made 20 years ago into $249,289.17 today (as of 10/12/2021). On a total return basis, that’s a result of 2,392.94% (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.]
Another great investment quote to think about:
“I’d like to live as a poor man with lots of money.” — Pablo Picasso