“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten 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 ten year investment into the stock back in 2014.
| Start date: | 12/30/2014 |
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| End date: | 12/27/2024 | ||||
| Start price/share: | $64.07 | ||||
| End price/share: | $96.97 | ||||
| Starting shares: | 156.08 | ||||
| Ending shares: | 156.08 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 51.35% | ||||
| Average annual return: | 4.23% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $15,133.08 | ||||
As shown above, the ten year investment result worked out as follows, with an annualized rate of return of 4.23%. This would have turned a $10K investment made 10 years ago into $15,133.08 today (as of 12/27/2024). On a total return basis, that’s a result of 51.35% (something to think about: how might AKAM shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby Davis
