A Lesson from One of Wall Street's Greatest Investors: Hetty Green
How a 100-year-old investing lesson applies to Netflix’s recent stock decline.
Hey there,
Have you ever noticed that when stocks are falling, you have an overwhelming urge to keep your money in your pocket, but when they’re climbing, you want to buy as much as you can?
As a long-term investor, that’s a mistake.
Let me prove it with the story of Hetty Green—one of the greatest investors in American history.
When Markets Fell
Between 1895 and 1915, the American economy had its troubles. Banks failed, commodity prices collapsed, and railroad companies went bankrupt.
The New York Stock Exchange tumbled as investors panicked and sold assets as quickly as possible.
Hetty did the opposite. She understood falling stock prices were discounts, and she bought huge quantities of strong companies while they were dirt cheap. She made similar investments in both stocks and real estate throughout this period.
When she passed away in 1916, her fortune was valued between $100 and $200 million (equivalent to billions today).
Good News For You
More than 100 years later, human behavior hasn’t changed. Investors still panic, sell large quantities of great companies, and drive down stock prices.
This is your chance.
A Netflix Example:
Netflix reported earnings last week, and it was outstanding! The company beat revenue and profit expectations, and added more than 23 million paying subscribers in Q4 of 2025.
💡 Tip: Q4 represents the last 3 months of the year.
These are all signs of a business that’s still growing.
And yet, investors are fixated on whether Netflix is overspending to acquire Warner Bros. Discovery. So they keep selling, and the stock price keeps falling.
This is exactly the kind of scenario Hetty Green loved! She purchased shares of thriving businesses that were temporarily being punished for things that may not matter 3-5 years from now.
Keep This in Mind
A falling stock price doesn’t automatically mean a company is failing. Sometimes it’s just a reflection of investors' uncertainty about its short-term future.
But it also doesn't mean you should rush to buy without a plan. Your job is to separate the temporary noise from long-term fundamentals.
That’s exactly what we’re doing in Earn Out Loud PRO later this week. We’ll cover why Netflix’s acquisition might succeed or fail, then decide whether to buy more shares or pass.
If you’d like to join us, click here for a PRO subscription today.
Keep getting wealthier,
✍️ Isaiah from Earn Out Loud