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“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 2002, and take a look at what happened to investors who asked that very question about Akamai Technologies Inc (NASD: AKAM), by taking a look at the investment outcome over a twenty year holding period.

Start date: 03/11/2002


End date: 03/09/2022
Start price/share: $4.60
End price/share: $109.18
Starting shares: 2,173.91
Ending shares: 2,173.91
Dividends reinvested/share: $0.00
Total return: 2,273.48%
Average annual return: 17.15%
Starting investment: $10,000.00
Ending investment: $237,361.82

The above analysis shows the twenty year investment result worked out exceptionally well, with an annualized rate of return of 17.15%. This would have turned a $10K investment made 20 years ago into $237,361.82 today (as of 03/09/2022). On a total return basis, that’s a result of 2,273.48% (something to think about: how might AKAM shares perform over the next 20 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