Embedded in Netflix, Inc. (NASDAQ:NFLX)‘s growth story is a tale of pure genius investing methods and a lesson for amateurs retail investors. The living proof of this tale is Brett Icahn of Sargon Portfolio, who related the story on CNBC.
It’s best to hear the tale of genius investing from the man who was among the man who along with others was the brain child of the strategy. It provides a peek into how an investing acumen is supposed to function.
[…] With Netflix, Inc. (NASDAQ:NFLX), we started buying it at $68 and you know all along the way we have faced criticism like that from many people saying that why we are holding on, it just doubled and it doubled again and we just continued to have very strong thesis about the company’s growth […],” said Icahn.
When Icahn mentioned the twice doubling effect on Netflix, Inc. (NASDAQ:NFLX) stock price, he was being rather modest. That would only bring Netflix’s price to $272, which in itself is a hefty profit. However, Netflix as of the end of the trading day today was trading it at a whopping $461.62 per share.
It is not only that the Sargon Portfolio’s management decided to stay invested when many others would have cashed in on the profits, but also the firm belief in their investment thesis which not even a 4 times return on investment changed. Icahn expanded more on this thesis and described what makes Netflix, Inc. (NASDAQ:NFLX) such a great investment.
” […] We wrote a letter once that it is one of the greatest consumer bargains of our time, and they [Netflix, Inc. (NASDAQ:NFLX)] have, you know great growth domestically and internationally and great operational leverage in that company because the fixed costs are pretty much static, to the extent that they choose to keep them static […],” explained Icahn.
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