“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 decade-long 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 decade-long investment into the stock back in 2010.
| Start date: | 08/19/2010 |
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| End date: | 08/18/2020 | ||||
| Start price/share: | $18.32 | ||||
| End price/share: | $491.87 | ||||
| Starting shares: | 545.85 | ||||
| Ending shares: | 545.85 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2,584.88% | ||||
| Average annual return: | 38.94% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $268,568.80 | ||||
As shown above, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 38.94%. This would have turned a $10K investment made 10 years ago into $268,568.80 today (as of 08/18/2020). On a total return basis, that’s a result of 2,584.88% (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.]
Here’s one more great investment quote before you go:
“Cash is a fact, profit is an opinion.” — Alfred Rappaport
