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“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a ten 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 ten year investment into the stock back in 2010.

Start date: 07/12/2010


End date: 07/09/2020
Start price/share: $17.52
End price/share: $15.88
Starting shares: 570.78
Ending shares: 570.78
Dividends reinvested/share: $0.00
Total return: -9.36%
Average annual return: -0.98%
Starting investment: $10,000.00
Ending investment: $9,062.11

The above analysis shows the ten year investment result worked out poorly, with an annualized rate of return of -0.98%. This would have turned a $10K investment made 10 years ago into $9,062.11 today (as of 07/09/2020). On a total return basis, that’s a result of -9.36% (something to think about: how might MYL shares perform over the next 10 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Another great investment quote to think about:
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” — Albert Einstein