When most think of building a fortune, they think of starting a business, taking a big gamble, or getting wildly lucky.
The reality is that building a fortune is easily accessible to anyone willing to live within their means, save diligently, and invest wisely.
The Millionaire Next Door illustrates this point well. So did a recent article in the Wall Street Journal (subscription required).
Ronald Read recently passes away at the age of 92 with $8 million in investments and saving. Did he start a business, take a big gamble or get wildly lucky? Nope.
He “displayed remarkable frugality and patience–which gave him many years of compounded growth.” “He lived modestly, working as a maintenance worker and janitor at a J.C. Penney store after a long stint at a service station….”
“Those who knew him talk of how he at times used safety pins to hold his coat together and sometimes parked his 2007 Toyota Yaris far from where he was going to avoid having to feed the parking meter.”
This isn’t quite the 1% popularly portrayed in the media. This was a normal guy who worked, saved and invested.
“Mr. Read owned at least 95 stocks at the time of his death, many of which he had held for years, if not decades.” Not really day trading.
His holdings were “spread across a variety of sectors, including railroads, utility companies, banks, health care, telecom and consumer products. He avoided technology stocks.” He invested in things he understood after doing his own research.
“Friends say he typically bought shares of companies he was familiar with and those that paid hefty dividends. When dividend checks came in the mail, he plowed the money back into more shares….”
No six-figure income. No internet start-up. Just living within his means, saving consistently, investing after doing his homework. Being patient, being frugal, thinking long term.
Financial success doesn’t require lots of luck or risk taking. Just simple strategies implemented consistently.
Nothing in this blog should be considered investment, financial, tax, or legal advice. The opinions, estimates and projections contained herein are subject to change without notice. Information throughout this blog has been obtained from sources believed to be accurate and reliable, but such accuracy cannot be guaranteed.