“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 2018.
| Start date: | 05/02/2018 |
|
|||
| End date: | 05/01/2023 | ||||
| Start price/share: | $165.72 | ||||
| End price/share: | $134.26 | ||||
| Starting shares: | 60.34 | ||||
| Ending shares: | 60.34 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -18.98% | ||||
| Average annual return: | -4.12% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $8,102.89 | ||||
The above analysis shows the five year investment result worked out poorly, with an annualized rate of return of -4.12%. This would have turned a $10K investment made 5 years ago into $8,102.89 today (as of 05/01/2023). On a total return basis, that’s a result of -18.98% (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.]
One more piece of investment wisdom to leave you with:
“When you sell in desperation, you always sell cheap.” — Peter Lynch
