“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.
|Average annual return:||32.86%|
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