Netflix: The Pace Of Change
Note: Review all prior Netflix (NFLX) research on the TSOH website
“My greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Most companies that are great at something, like AOL dialup or Borders bookstores, do not become great at new things people want (streaming for us) because they are afraid to hurt their initial business. Eventually these companies realize their error of not focusing enough on the new thing, and then they fight desperately and hopelessly to recover. Companies rarely die from moving too fast, and they frequently die from moving too slowly.”
My confidence in Netflix’s competitive standing and long-term financial trajectory, along with its changing valuation / volatile stock price, has informed my position sizing throughout the course of my NFLX investment over the past four years. At one time, it was a mid-teens percentage of the portfolio; it has since declined to a much lower weighting (~6% as of the latest update) as a result of trimming and stock price weakness off the June 2025 highs.