The Lesson of My Netflix Investment Mistake

I have been investing in the stock market since my first year out of college. I knew that it was important to not just work for money but to make money work for you. You can read Robert Kiyosaki’s works for more pithy moneyisms like that.

As an investor I have had plenty of successes. I have had plenty of failures. Kinda like a typical country song. But I have become much better at evaluating stocks and recognizing great buying opportunities over time.

Today, when I review my investments, there is one stock that stands out and makes me cringe every time.

It is Netflix. (NFLX on your radio dial.)

It is the only stock I own that I shake my head at when I review the details of my purchase. I am always left wondering, what the heck was I thinking? I can practically hear Nancy Kerrigan screaming, “Why? Why? Why?” when I check my E-trade account.

The Details:

I bought Netflix in 2022 for $184.25 per share.

As of this publishing Netflix is selling for $848.26 per share.

Today, the return on my investment stands at 360%.

I have almost never been as right about buying a stock as I was about buying Netflix when I did.

So what’s the problem?

I only bought 5 shares.

Not Ten. Not Fifty. Not 500 million.

Five.

Heck, I have twice as many fingers as I have Netflix shares.

The Kicking of Myself

I knew Netflix was a great company.

I knew the stock was at a great price after falling far from its recent highs.

This was the classic dip you always look for to buy stocks in blue chip companies.

It was like investing in Martha Stewart as she headed off to summer prison camp. She was a good bet in a down time. And an amazing bet with a potential prison-cred reboot with Snoop Dogg.

I knew that all signs pointed to Netflix being a great investment at a great time to buy.

Yet I didn’t go all in.

I barely went in at all. Not even 4 figures.

I invested just $921.25

Today that is $4,241.20.

But imagine for yourself what would happen if there was another zero behind that investment. Or two. Or a hundred billion zeros… (Insert Dr. Evil Laugh.) Consider what those scaled investments would have translated to today.

Obviously, I am grateful that I have a very handsome (almost Zoolander-like) return on my investment.

But I am disappointed with the strength of my conviction. That I didn’t bet bigger when all the signs said Go!

Key Takeaway

When you have done your homework, and you know you are right, you need to go all in. Push all your chips into the center of the table. It’s true for investments, entrepreneurship, and relationships. It’s true of all the important commitments and bets you will ever make on yourself.

*If you know someone who could benefit from this message, please share it with them.

+For more of the best life lessons I have learned check out my book, What Does Your Fortune Cookie Say? from Ripples Media.

Originally published at http://adamalbrecht.blog on January 16, 2025.