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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five 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 five year investment into the stock back in 2018.

Start date: 05/07/2018


End date: 05/04/2023
Start price/share: $326.26
End price/share: $320.78
Starting shares: 30.65
Ending shares: 30.65
Dividends reinvested/share: $0.00
Total return: -1.68%
Average annual return: -0.34%
Starting investment: $10,000.00
Ending investment: $9,831.34

As we can see, the five year investment result worked out poorly, with an annualized rate of return of -0.34%. This would have turned a $10K investment made 5 years ago into $9,831.34 today (as of 05/04/2023). On a total return basis, that’s a result of -1.68% (something to think about: how might NFLX shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“The stock market is a device to transfer money from the impatient to the patient.” — Warren Buffett