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Netflix made long-term investors rich. How?

As market volatility picks up, it’s nice to look back at stocks that rewarded investors in the long run for enduring the difficult times.

And in the past decade there are not many companies that are a better example of this than Netflix, Cnbc knows.


Buying shares from the US streaming service for the long term has paid off with dazzling returns for investors who braved the volatility.

It started as a simple idea in the 1990s to take over blockbuster and other video stores and to sign up monthly subscriptions to DVD rental by post. But a strong step towards digital streaming and then a remarkable and risky investment in content creation has turned Netflix into one of the world’s foremost media companies.

Annually 46 %

And you did not have to invest in the company’s IPO to earn a lot of money. Netflix was already a household name when it delivered its billionth DVD in February 2007.

If you had bought the shares at that time, you would have achieved a compound annual growth of 46 % – more than 5 times the total return on the S & P 500 index in the same period.


However, there were also some missteps of the company that investors had to struggle through, such as the Qwikster debacle. In July 2011 Netflix split the old DVD mail activities of the streaming service. Clients saw the split as a price increase and Netflix lost more than 800,000 customers in one quarter.

Instead of giving in a mistake, the company went through the split and CEO Reed Hastings changed the name of the DVD service to ‘Qwikster’. The criticism of Wall Street came in. Hastings eventually apologized for the misstep and reversed the decision, but it was too late to stop the bleeding. The share lost more than 75 percent of its value around Christmas in 2011.

Strong foundations …

But the foundations of the company were strong and consumers embraced the company’s technology. If you bought $ 1,000 Netflix shares after the Qwikster debacle, it would be worth about $ 28,000 today.

… & own content

The Netflix shares shot up after the company started producing its own original content. Mega hits such as ‘Orange is the New Black’ and ‘House of Cards’ made the product a must-have for many households. And Netflix competed with HBO and other large media conglomerates.

The company was soon more valuable than Disney and Comcast earlier this year, despite Netflix’s $ 11 billion in 2017 being only a fraction of the other powerhouses.

30 % dropped

The share has now dropped more than 30 percent since the summit a few months ago and there are concerns as to whether the company can continue to grow at its current size. Netflix is ​​currently active in 190 countries. But when the market falter, lessons from previous investments in rising US companies can help investors find the following opportunities.


Around the company in Helmond, Toxic substances in the soil & surface water

In the soil, groundwater and surface water around the company Custom Powders in Helmond, increased concentrations of the toxic substances GenX and PFOA were found, according to an exploratory study commissioned by the municipality of Helmond.

The highest concentrations of potentially carcinogenic substances have been found in the vicinity of the farm, at a number of vegetable gardens and in a fish pond.

Acute measures for the protection of public health or the environment are not necessary, but the municipality does have extra research into the exact extent of the pollution.

The hardly degradable substances left the factory mainly via the chimney. That is why especially places that are under the smoke of the factory are examined. The follow-up research focuses on locations in other wind directions.

Fabrics can be used as a protective layer

Custom Powders processed GenX and PFOA for the acclaimed Dordrecht company Chemours. After GenX was found in sewage treatment, the company stopped earlier this year. GenX was used by the company as a replacement for the more harmful PFOA.

GenX and PFOA can be used as a protection layer for, for example, pans, cardboard packaging and clothing.

Both substances are harmful to the liver and possibly carcinogenic, reports the National Institute for Public Health and the Environment (RIVM).

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Logitech wants to take over Plantronics the headphone makers

Gadgetmaker Logitech would have discussions to take over the American Plantronics.

Sources let the Reuters news agency know that this would be “the biggest acquisition” of Logitech. The company would like to pay 2.2 billion dollars (1.9 billion euros) for the purchase of Plantronics.

It is not clear how far the discussions between the two companies have progressed. The initiates report that an agreement can be reached next week. The companies have not yet responded to the rumors of Reuters.

Logitech makes accessories in areas such as gaming, music and smart home solutions. The company paid 85 million dollars last year for the acquisition of Astro Gaming, to expand into the gaming sector.

Earlier this year, Logitech bought the American microphone manufacturer Blue Microphones for $ 117 million. Logitech already makes microphones for consumers, but with Blue the company would have the means to build more professional equipment.

Plantronics publishes communication systems, among other things. The company is also known for its (wireless) headsets.

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No robbery at Takkebijsters

At a company at the Takkebijsters in Breda, contrary to a previous message, Tuesday morning no robbery committed.

On Tuesday around 9 am, the robbery was reported at 112, but the police announced fifteen minutes later that there had been an erroneous press alarm.

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