Wednesday, January 20, 2016
Ronald Read: US Secret Millionaire With US$8 Million Fortune
This is not a new article but was published last year in CNBC. Now maybe a good time to bring out a motivational story to remind our long term investors that market volatility is quite expected in stock investment. Instead, we should take this opportunity to collect our 'dream' dividend stocks. Things should turn for the better in time. If you are feeling down or depressed, fear not, the rain will stop, dark cloud will clear and we shall see rainbow and sunshine shinning on us again :)
How about if I tell you that you just need to work as a gas station attendant and a janitor and you will end up as a millionaire when you retired?
That's how Ronald Read did it
1. Invest in a small basket of 6 dividend blue chips. Ronald invested in a list of major U.S. companies. They include AT&T (NYSE:T), Bank of America (BAC), CVS (CVS), Deere (DE), GE (GE), and General Motors (GM).
2. Live till ripe old age to allow your investment to compound and multiply. He lived up to 92 years old.
3. Stay invested and contribute roughly $300 a month for 65 years, assuming an eight percent rate of return. Its not a big sum of money right?
4. Frugal. Lead a very simple life, he often was seen wearing an old cap, a jacket with safety pin as the zip was not working. No car and just a small house.
Out of the US$8 million fortune, US$6 million was donated to a local library and hospital in his home town