“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: | 09/09/2010 |
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| End date: | 09/08/2020 | ||||
| Start price/share: | $17.70 | ||||
| End price/share: | $15.64 | ||||
| Starting shares: | 564.97 | ||||
| Ending shares: | 564.97 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | -11.64% | ||||
| Average annual return: | -1.23% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $8,835.30 | ||||
As shown above, the ten year investment result worked out poorly, with an annualized rate of return of -1.23%. This would have turned a $10K investment made 10 years ago into $8,835.30 today (as of 09/08/2020). On a total return basis, that’s a result of -11.64% (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.]
More investment wisdom to ponder:
“All the opportunity in the world means nothing if you don’t actually pull the trigger.” — Sam Zell
