“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 F5 Networks, Inc. (NASD: FFIV)? Today, we examine the outcome of a five year investment into the stock back in 2015.
| Start date: | 10/08/2015 |
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| End date: | 10/07/2020 | ||||
| Start price/share: | $118.93 | ||||
| End price/share: | $127.63 | ||||
| Starting shares: | 84.08 | ||||
| Ending shares: | 84.08 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 7.32% | ||||
| Average annual return: | 1.42% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $10,730.87 | ||||
The above analysis shows the five year investment result worked out as follows, with an annualized rate of return of 1.42%. This would have turned a $10K investment made 5 years ago into $10,730.87 today (as of 10/07/2020). On a total return basis, that’s a result of 7.32% (something to think about: how might FFIV shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more piece of investment wisdom to leave you with:
“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” — Warren Buffett
