“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 decade-long 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 decade-long investment into the stock back in 2010.
| Start date: | 08/09/2010 |
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| End date: | 08/06/2020 | ||||
| Start price/share: | $18.10 | ||||
| End price/share: | $16.42 | ||||
| Starting shares: | 552.49 | ||||
| Ending shares: | 552.49 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -9.28% | ||||
| Average annual return: | -0.97% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $9,071.26 | ||||
As shown above, the decade-long investment result worked out poorly, with an annualized rate of return of -0.97%. This would have turned a $10K investment made 10 years ago into $9,071.26 today (as of 08/06/2020). On a total return basis, that’s a result of -9.28% (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.]
One more piece of investment wisdom to leave you with:
“A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” — Warren Buffett
