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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— 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 decade-long period?

Today, let’s look backwards in time to 2011, 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 decade-long holding period.

Start date: 11/11/2011


End date: 11/10/2021
Start price/share: $111.19
End price/share: $225.46
Starting shares: 89.94
Ending shares: 89.94
Dividends reinvested/share: $0.00
Total return: 102.77%
Average annual return: 7.32%
Starting investment: $10,000.00
Ending investment: $20,275.65

As shown above, the decade-long investment result worked out well, with an annualized rate of return of 7.32%. This would have turned a $10K investment made 10 years ago into $20,275.65 today (as of 11/10/2021). On a total return basis, that’s a result of 102.77% (something to think about: how might FFIV shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

More investment wisdom to ponder:
“Money is better than poverty, if only for financial reasons.” — Woody Allen