Photo credit:

“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.

Start date: 12/12/2016


End date: 12/09/2021
Start price/share: $64.25
End price/share: $111.92
Starting shares: 155.64
Ending shares: 155.64
Dividends reinvested/share: $0.00
Total return: 74.19%
Average annual return: 11.75%
Starting investment: $10,000.00
Ending investment: $17,417.00

As we can see, the five year investment result worked out quite well, with an annualized rate of return of 11.75%. This would have turned a $10K investment made 5 years ago into $17,417.00 today (as of 12/09/2021). On a total return basis, that’s a result of 74.19% (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.]

Another great investment quote to think about:
“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” — Jim Cramer