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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 Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten year 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 ten year investment into the stock back in 2012.

Start date: 02/14/2012


End date: 02/11/2022
Start price/share: $125.78
End price/share: $195.82
Starting shares: 79.50
Ending shares: 79.50
Dividends reinvested/share: $0.00
Total return: 55.68%
Average annual return: 4.53%
Starting investment: $10,000.00
Ending investment: $15,574.33

The above analysis shows the ten year investment result worked out as follows, with an annualized rate of return of 4.53%. This would have turned a $10K investment made 10 years ago into $15,574.33 today (as of 02/11/2022). On a total return basis, that’s a result of 55.68% (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.]

Here’s one more great investment quote before you go:
“Markets can remain irrational longer than you can remain solvent.” — John Maynard Keynes