“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty 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 twenty year investment into the stock back in 2004.
| Start date: | 10/04/2004 |
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| End date: | 10/03/2024 | ||||
| Start price/share: | $16.39 | ||||
| End price/share: | $218.08 | ||||
| Starting shares: | 610.13 | ||||
| Ending shares: | 610.13 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,230.57% | ||||
| Average annual return: | 13.81% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $133,114.13 | ||||
The above analysis shows the twenty year investment result worked out quite well, with an annualized rate of return of 13.81%. This would have turned a $10K investment made 20 years ago into $133,114.13 today (as of 10/03/2024). On a total return basis, that’s a result of 1,230.57% (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.]
One more investment quote to leave you with:
“The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.” — Benjamin Graham
