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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

The investment philosophy practiced by Warren Buffett calls for investors to take a long-term horizon when making an investment, such as a twenty year holding period (or even longer), and reconsider making the investment in the first place if unable to envision holding the stock for at least five years. Today, we look at how such a long-term strategy would have done for investors in F5 Inc (NASD: FFIV) back in 2004, holding through to today.

Start date: 05/03/2004


End date: 04/29/2024
Start price/share: $13.63
End price/share: $182.13
Starting shares: 733.68
Ending shares: 733.68
Dividends reinvested/share: $0.00
Total return: 1,236.24%
Average annual return: 13.84%
Starting investment: $10,000.00
Ending investment: $133,675.55

As shown above, the twenty year investment result worked out quite well, with an annualized rate of return of 13.84%. This would have turned a $10K investment made 20 years ago into $133,675.55 today (as of 04/29/2024). On a total return basis, that’s a result of 1,236.24% (something to think about: how might FFIV shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.” — Peter Lynch