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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 2018.

Start date: 11/07/2018


End date: 11/06/2023
Start price/share: $188.46
End price/share: $154.53
Starting shares: 53.06
Ending shares: 53.06
Dividends reinvested/share: $0.00
Total return: -18.00%
Average annual return: -3.89%
Starting investment: $10,000.00
Ending investment: $8,200.55

As shown above, the five year investment result worked out poorly, with an annualized rate of return of -3.89%. This would have turned a $10K investment made 5 years ago into $8,200.55 today (as of 11/06/2023). On a total return basis, that’s a result of -18.00% (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:
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” — George Soros