death, taxes and rising prices

Im inclined to write another article about this one because i just cant stop myself from doing so and that i cant stop people around me from talking about it. :) how many times have we heard our elders talk.... “when i was still a kid coca-cola was only worth P0.10” or “when i was in high school batchoy was just just P0.30” or “when i was still in school my allowance was just P5.00 a week” or “your grandfather bought this lot for only P10.00 per square meter”. :) hopefully someday i can also say that.... “i first bought urc at P6.40 per share.” or “mbt was just selling for P25.00 per share when i started investing in stocks.” :) but these stories are all so true. :) they say that the two absolute things in life are death and taxes and i could say one of the ALMOST absolute things in life should be rising prices in almost all things. :) and that also applies with stocks but.......... only with quality stocks. As warren buffett said “when holding a great stock time is your best friend but when holding a bad stock time is your worst enemy.” When i say quality stocks they are the ones with a solid business with room for growth and at the same time they have solid and honest management :) but just because those two things are present in a company it doesnt that you'll buy them right away but you wait for them to drop to a certain price wherein you could get superior long term returns. :) but that is easier said than done because one of the hardest parts in investing is the waiting...... waiting for the right price that is. :) i have done some calculations of some basic stuff that we consume like coke has increased at an average of 8.25% per annum in the last 50 years and batchoy has increased at an average of almost 12% per year. :) which brings compounding back in my head. :) im a social smoker i must admit and i have to admit that the figures and future compounded returns or losses that is could drive me to stop smoking once and for all. Lets calculate here: if i smoke a ream of cigarettes every month with the cost of a ream for the sake of simplicity at around P300 which is P3,600 in a year. And now making assumptions here are the results. This will be the money that i lost if i had foregone smoking and instead invested it in stocks:
15% per annum in 15 years P29,293.42
in 20 years P58,919.53
in 25 years P118,508.23
in 30 years P238,362.38
20% per annum in 15 years P55,465.28
in 20 years P138,015.36
in 25years P343,426.38
in 30 years P854,554.73
this is the power of compounding to you at its finest. :) and i still havent mentioned the mounting medical bills because of heart, lung, bad gums, bad teeth, insomia, yellowish fingertips and a weaker immune system caused by smoking and not to mention that men are more prone to impotence when they smoke. Phew!!!! so in the end you will lose more than the figures that i mentioned above. :) again remember that health is wealth so dont kill yourself working for money. Enjoy it also every once in awhile. :) i have made up my mind to buy a nikon dslr the d80 model. But please i dont want to count the future income that i will lose if i buy this camera..... its my new hobby and you need to have a diversion every now and then. :) enjoy life but also be prudent. God bless you always and good luck with your investments. :)