You can only gain this kind of astronomical return if you invest in a company that generates increasing profits. The bonus shares and splits are not magic. Having more shares when profits are falling or for the matter turning into losses would just make your stock a bad investment. The business, economics and operation matter if you want to hold a company for long.

Bonus shares and good dividends appear to be indicative of management that has confidence in their business and prefers you stick with them. In my brief exercise, not many would carry out a bonus share issue. Strangely those that issued bonus shares turned out to be rather sturdy companies that grow.

The price you buy matters but it is important to know the value you get. Which is why we keep advocating buying 50 cents for $1 worth. Buy value at reasonable prices. Comparing 2 commodities investments then, you may get more value simply because Noble choose to reward their share holders more.

I tried changing the first buy price of Noble from 22.5 cents to $3 or $6 and turns out you would still make money! You only start losing money if you have bought Noble at $22 in 2001. That to me is pretty amazing.

Compounding and the time value of money will work if you spot a company that grows its earnings and reward you.

Reinvest only in companies with good business, sound management that consistently shows a willingness to reward share holders. Management retires and business environment changes. Noble is in a stage right now where the chairman is struggling to find a successor. We are entering another difficult operation condition. Your dividends will ensure that you receive rewards while waiting. A change from the policy these 10 years (cutting bonus issue and dividend policy) would signal that you need to relook your investment.

Hindsight is a bitch. This exercise just shows I missed a great deal.