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“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


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