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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: 07/26/2018


End date: 07/25/2023
Start price/share: $363.09
End price/share: $427.70
Starting shares: 27.54
Ending shares: 27.54
Dividends reinvested/share: $0.00
Total return: 17.79%
Average annual return: 3.33%
Starting investment: $10,000.00
Ending investment: $11,779.64

As shown above, the five year investment result worked out as follows, with an annualized rate of return of 3.33%. This would have turned a $10K investment made 5 years ago into $11,779.64 today (as of 07/25/2023). On a total return basis, that’s a result of 17.79% (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.]

More investment wisdom to ponder:
“Price is what you pay. Value is what you get.” — Warren Buffett