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“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


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