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“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 2002.

Start date: 08/05/2002


End date: 08/04/2022
Start price/share: $0.78
End price/share: $229.91
Starting shares: 12,820.51
Ending shares: 12,820.51
Dividends reinvested/share: $0.00
Total return: 29,375.64%
Average annual return: 32.86%
Starting investment: $10,000.00
Ending investment: $2,946,030.43

The above analysis shows the two-decade investment result worked out exceptionally well, with an annualized rate of return of 32.86%. This would have turned a $10K investment made 20 years ago into $2,946,030.43 today (as of 08/04/2022). On a total return basis, that’s a result of 29,375.64% (something to think about: how might NFLX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Here’s one more great investment quote before you go:
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” — George Soros