Somehow, I remember 1997 like yesterday. The cliché "time flies" truly is a cliché.What is noteworthy and hopefully useful to people of all ages is that over those 10 years I have truly come to appreciate the power of compounding.
Take a look at the prices of the following comapnies in my portfolio on January 26th 1997:
| Stock | 1997 | 2007 | % annual return |
| JNJ | $24.62 | $66.68 | 17.08% |
| AIG | $27.62 | $68.89 | 14.94% |
| NVS | $25.88 | $58.26 | 12.56% |
| BRK.B | $1155 | $3585.91 | 21.05% |
It is interesting to note that, the stock that I least followed during that period was BRKB (Berkshire Hathway B) and it delivered the best return. My (Heartburn/Profit)% was pretty low with Mr. Buffett's company.
There is something to be said about patient and disciplined investing. You don't have to be a genius, what matters is the ability to maintain temperament, follow good companies, and pick them up when they are not in vogue.
Sounds easy right! However, I have found that to stick with that idea for 10 years is the hardest part.
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