“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Mylan NV (NASD: MYL)? Today, we examine the outcome of a five year investment into the stock back in 2015.
|Average annual return:||-26.43%|
As we can see, the five year investment result worked out poorly, with an annualized rate of return of -26.43%. This would have turned a $10K investment made 5 years ago into $2,153.47 today (as of 05/14/2020). On a total return basis, that’s a result of -78.46% (something to think about: how might MYL shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
More investment wisdom to ponder:
“The right time for a company to finance its growth is not when it needs capital, but rather when the market is most receptive to providing capital.” — Michael Milken