Photo credit:

“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 Netflix Inc (NASD: NFLX)? Today, we examine the outcome of a ten year investment into the stock back in 2009.

Start date: 08/24/2009


End date: 08/21/2019
Start price/share: $6.33
End price/share: $297.81
Starting shares: 1,579.78
Ending shares: 1,579.78
Dividends reinvested/share: $0.00
Total return: 4,604.74%
Average annual return: 46.99%
Starting investment: $10,000.00
Ending investment: $470,348.30

As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 46.99%. This would have turned a $10K investment made 10 years ago into $470,348.30 today (as of 08/21/2019). On a total return basis, that’s a result of 4,604.74% (something to think about: how might NFLX shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“In the long run, we are all dead.” — John Maynard Keynes