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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2017.

Start date: 10/11/2017


End date: 10/10/2022
Start price/share: $115.99
End price/share: $143.54
Starting shares: 86.21
Ending shares: 86.21
Dividends reinvested/share: $0.00
Total return: 23.75%
Average annual return: 4.35%
Starting investment: $10,000.00
Ending investment: $12,372.64

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 4.35%. This would have turned a $10K investment made 5 years ago into $12,372.64 today (as of 10/10/2022). On a total return basis, that’s a result of 23.75% (something to think about: how might FFIV shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” — Warren Buffett