Photo credit:

“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 Akamai Technologies Inc (NASD: AKAM)? Today, we examine the outcome of a five year investment into the stock back in 2019.

Start date: 06/06/2019


End date: 06/05/2024
Start price/share: $78.18
End price/share: $90.74
Starting shares: 127.91
Ending shares: 127.91
Dividends reinvested/share: $0.00
Total return: 16.07%
Average annual return: 3.02%
Starting investment: $10,000.00
Ending investment: $11,604.95

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 3.02%. This would have turned a $10K investment made 5 years ago into $11,604.95 today (as of 06/05/2024). On a total return basis, that’s a result of 16.07% (something to think about: how might AKAM shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” — Seth Klarman