“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
One of the most important things investors can learn from Warren Buffett, is about how they approach their time horizon for an investment into a stock under consideration. Because immediately after buying shares of a given stock, investors will then be able to check on the day-to-day (and even minute-by-minute) market value. Some days the stock market will be up, other days down. These daily fluctuations can often distract from the long-term view. Today, we look at the result of a ten year holding period for an investor who was considering F5 Inc (NASD: FFIV) back in 2015, bought the stock, ignored the market’s ups and downs, and simply held through to today.
| Start date: | 03/10/2015 |
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| End date: | 03/07/2025 | ||||
| Start price/share: | $112.29 | ||||
| End price/share: | $275.63 | ||||
| Starting shares: | 89.06 | ||||
| Ending shares: | 89.06 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 145.46% | ||||
| Average annual return: | 9.40% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $24,556.88 | ||||
The above analysis shows the ten year investment result worked out well, with an annualized rate of return of 9.40%. This would have turned a $10K investment made 10 years ago into $24,556.88 today (as of 03/07/2025). On a total return basis, that’s a result of 145.46% (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.]
More investment wisdom to ponder:
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch
