“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 2011.
| Start date: | 09/09/2011 |
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| End date: | 09/08/2021 | ||||
| Start price/share: | $29.14 | ||||
| End price/share: | $606.05 | ||||
| Starting shares: | 343.17 | ||||
| Ending shares: | 343.17 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,979.79% | ||||
| Average annual return: | 35.43% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $207,907.67 | ||||
As we can see, the decade-long investment result worked out exceptionally well, with an annualized rate of return of 35.43%. This would have turned a $10K investment made 10 years ago into $207,907.67 today (as of 09/08/2021). On a total return basis, that’s a result of 1,979.79% (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.]
One more piece of investment wisdom to leave you with:
“You’ve got to be careful if you don’t know where you’re going, ’cause you might not get there.” — Yogi Berra
