NFLX ‘Buy And Hold’ Strategy Proves Lucrative

— Warren Buffett

Such a great quote from Warren Buffett, highlighting the importance of investment time horizon when considering making an investment. In the short run, who knows what the stock market will do? A week or two after buying any given stock, could the entire stock market fall out of bed? Quite possibly! Should that happen, how would you react? It is an excellent question to think about before hitting the buy button.

For investors who take a multi-year time horizon, the important thing is not what happens in the next week or two, but what the result will be over the long haul. Today, we look at the result investors of the year 2005 experienced, who considered an investment in shares of Netflix Inc (NASD: NFLX) and decided upon a twenty year investment time horizon.

NFLX 20-Year Return Details
Start date:	10/17/2005	$10,000 10/17/2005 $2,919,380 10/14/2025
End date:	10/14/2025
Start price/share:	$4.16
End price/share:	$1,215.35
Starting shares:	2,403.85
Ending shares:	2,403.85
Dividends reinvested/share:	$0.00
Total return:	29,115.14%
Average annual return:	32.81%
Starting investment:	$10,000.00
Ending investment:	$2,919,380.96

The above analysis shows the twenty year investment result worked out exceptionally well, with an annualized rate of return of 32.81%. This would have turned a $10K investment made 20 years ago into $2,919,380.96 today (as of 10/14/2025). On a total return basis, that’s a result of 29,115.14% (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.]

Another great investment quote to think about:
“If you’re looking for a home run, a great investment for five years or 10 years or more, then the only way to beat this enormous fog that covers the future is to identify a long-term trend that will give a particular business some sort of edge.” — Ralph Wanger