“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 ten 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 ten year investment into the stock back in 2012.
| Start date: | 10/12/2012 |
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| End date: | 10/11/2022 | ||||
| Start price/share: | $9.19 | ||||
| End price/share: | $214.29 | ||||
| Starting shares: | 1,088.14 | ||||
| Ending shares: | 1,088.14 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2,231.77% | ||||
| Average annual return: | 37.00% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $233,120.38 | ||||
As shown above, the ten year investment result worked out exceptionally well, with an annualized rate of return of 37.00%. This would have turned a $10K investment made 10 years ago into $233,120.38 today (as of 10/11/2022). On a total return basis, that’s a result of 2,231.77% (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.]
More investment wisdom to ponder:
“In the long run, we are all dead.” — John Maynard Keynes
