“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 F5 Inc (NASD: FFIV)? Today, we examine the outcome of a decade-long investment into the stock back in 2011.
| Start date: | 12/22/2011 |
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| End date: | 12/21/2021 | ||||
| Start price/share: | $104.48 | ||||
| End price/share: | $233.16 | ||||
| Starting shares: | 95.71 | ||||
| Ending shares: | 95.71 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 123.16% | ||||
| Average annual return: | 8.35% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $22,308.99 | ||||
The above analysis shows the decade-long investment result worked out well, with an annualized rate of return of 8.35%. This would have turned a $10K investment made 10 years ago into $22,308.99 today (as of 12/21/2021). On a total return basis, that’s a result of 123.16% (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.]
One more investment quote to leave you with:
“People who invest make money for themselves; people who speculate make money for their brokers.” — Benjamin Graham
