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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The above quote from Warren Buffett is timeless, and brings into focus the choice about time horizon that any investor should think about before buying a stock they are considering. Behind every stock is an actual business; what will that business look like over a ten year period?

Today, let’s look backwards in time to 2014, and take a look at what happened to investors who asked that very question about F5 Inc (NASD: FFIV), by taking a look at the investment outcome over a ten year holding period.

Start date: 02/05/2014


End date: 02/02/2024
Start price/share: $103.95
End price/share: $185.23
Starting shares: 96.20
Ending shares: 96.20
Dividends reinvested/share: $0.00
Total return: 78.19%
Average annual return: 5.95%
Starting investment: $10,000.00
Ending investment: $17,821.36

The above analysis shows the ten year investment result worked out well, with an annualized rate of return of 5.95%. This would have turned a $10K investment made 10 years ago into $17,821.36 today (as of 02/02/2024). On a total return basis, that’s a result of 78.19% (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:
“The idea that a bell rings to signal when to get into or out of the stock market is simply not credible. After nearly fifty years in this business, I don’t know anybody who has done it successfully and consistently.” — Jack Bogle