“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 2013.
| Start date: | 02/22/2013 |
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| End date: | 02/21/2023 | ||||
| Start price/share: | $25.69 | ||||
| End price/share: | $337.50 | ||||
| Starting shares: | 389.26 | ||||
| Ending shares: | 389.26 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 1,213.74% | ||||
| Average annual return: | 29.37% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $131,414.16 | ||||
As we can see, the ten year investment result worked out exceptionally well, with an annualized rate of return of 29.37%. This would have turned a $10K investment made 10 years ago into $131,414.16 today (as of 02/21/2023). On a total return basis, that’s a result of 1,213.74% (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.]
Here’s one more great investment quote before you go:
“In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money.” — Ray Dalio
