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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: 07/20/2017


End date: 07/19/2022
Start price/share: $183.60
End price/share: $201.63
Starting shares: 54.47
Ending shares: 54.47
Dividends reinvested/share: $0.00
Total return: 9.82%
Average annual return: 1.89%
Starting investment: $10,000.00
Ending investment: $10,981.40

As we can see, the five year investment result worked out as follows, with an annualized rate of return of 1.89%. This would have turned a $10K investment made 5 years ago into $10,981.40 today (as of 07/19/2022). On a total return basis, that’s a result of 9.82% (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 piece of investment wisdom to leave you with:
“I make no attempt to forecast the market; my efforts are devoted to finding undervalued securities.” — Warren Buffett