“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 2013.
| Start date: | 01/25/2013 |
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| End date: | 01/24/2023 | ||||
| Start price/share: | $105.43 | ||||
| End price/share: | $146.47 | ||||
| Starting shares: | 94.85 | ||||
| Ending shares: | 94.85 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 38.93% | ||||
| Average annual return: | 3.34% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,890.69 | ||||
The above analysis shows the ten year investment result worked out as follows, with an annualized rate of return of 3.34%. This would have turned a $10K investment made 10 years ago into $13,890.69 today (as of 01/24/2023). On a total return basis, that’s a result of 38.93% (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.]
Another great investment quote to think about:
“I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.” — Charlie Munger
