The Importance of Compounding

When you find an investment with the potential to compound over a long period of time, one of the hardest things is to be patient and maintain your position. Andrew insists that when you're talking about to day's great growth companies, the approach of by in sheep, set a target price, sell as it rises and exit fully when it reaches the target is dead wrong. A dispassionate look at history makes clear that taking profits in a rapidly growing company with durable competitive advantages has often been a mistake.