“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade 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 two-decade investment into the stock back in 2003.
| Start date: | 10/27/2003 |
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| End date: | 10/25/2023 | ||||
| Start price/share: | $3.84 | ||||
| End price/share: | $411.25 | ||||
| Starting shares: | 2,604.17 | ||||
| Ending shares: | 2,604.17 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 10,609.64% | ||||
| Average annual return: | 26.32% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $1,071,515.24 | ||||
As we can see, the two-decade investment result worked out exceptionally well, with an annualized rate of return of 26.32%. This would have turned a $10K investment made 20 years ago into $1,071,515.24 today (as of 10/25/2023). On a total return basis, that’s a result of 10,609.64% (something to think about: how might NFLX shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Though tempting, trying to time the market is a loser’s game.” — Christopher Davis
