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“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


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