Investor's $3,5 Million Netflix Mistake.

  Investor's $3,5 Million Netflix Mistake The investor, who said he made the smartest investment of his life nineteen years ago, announced that he made the stupidest decision a few months later. He claimed that the biggest investment success story is also the biggest investment failure. The investor, who said that he followed the DVDs by mail rental platform 19 years ago, later said that he subscribed to the Netflix NFLX (NASDAQ) $633,80 +4,04 (+%0,64) streaming platform. Adding to his words that he had become a new investor, the investor said that the stock value was roughly 1,180 at the time, and he bought 500 shares for $2,600 a few days ago. He said he thought it would make him feel good by selling most of his shares a few months later, but that it might have been a fortune-changing mistake so he could leave millions on the table.

Selling is the hardest part

Mathematics is real and brutal. The 500 shares at that time would be 7,000 shares today after a double share split over 19 years. Selling all but 20% of this position would be the beginning of the loss over time. When he first wrote this resolution in 2015, it would have been a mistake of $505,845. Because that was the value of the 80% stake he thought was too smart to dump years ago. The 80% stake he sold in early 2003 would have been worth $802,179 at the end of 2016, $884,709 in March 2017 and $2,8 million last summer. By Wednesday's close, it would have exceeded $3,5 million.

Investor's $3,5 Million Netflix Mistake

  The good news here is that normally the other 20% is a pretty good consolation prize. However, the investor did not follow his own advice and sold at the wrong times until now only 2% of his original position is left. 98% of his initial stake, which he no longer currently owns, would now be worth more than $4.3 million. Netflix still remains its largest conglomerate, and just the remaining 2% is worth more than most people earn in a year. So much time is spent trying to make mistakes in investing that sometimes we forget when the real challenge is to sell stocks. But as a matter of fact, that horse is still running.  

Source: The Motley Fool

 

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