“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 |
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| 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
