“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: | 12/28/2012 |
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| End date: | 12/27/2022 | ||||
| Start price/share: | $12.76 | ||||
| End price/share: | $284.17 | ||||
| Starting shares: | 783.70 | ||||
| Ending shares: | 783.70 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 2,127.04% | ||||
| Average annual return: | 36.38% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $222,779.92 | ||||
The above analysis shows the ten year investment result worked out exceptionally well, with an annualized rate of return of 36.38%. This would have turned a $10K investment made 10 years ago into $222,779.92 today (as of 12/27/2022). On a total return basis, that’s a result of 2,127.04% (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:
“Thousands of experts study overbought indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money supply…and they can’t predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.” — Peter Lynch
