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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2017.

Start date: 03/28/2017


End date: 03/25/2022
Start price/share: $145.17
End price/share: $373.85
Starting shares: 68.88
Ending shares: 68.88
Dividends reinvested/share: $0.00
Total return: 157.53%
Average annual return: 20.85%
Starting investment: $10,000.00
Ending investment: $25,750.32

As shown above, the five year investment result worked out exceptionally well, with an annualized rate of return of 20.85%. This would have turned a $10K investment made 5 years ago into $25,750.32 today (as of 03/25/2022). On a total return basis, that’s a result of 157.53% (something to think about: how might NFLX shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“When you sell in desperation, you always sell cheap.” — Peter Lynch