“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 |
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| 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
