“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.
|Average annual return:||38.94%|
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