I remember reading about Ronald Read when he passed away. This was a long, long time before I wanted to become an investor. Stories like Ronald's are more common than we think. I'm sure we're all familiar with the book, "The Millionaire Next Door". In that book we learn the habits of millionaires (i.e. "rich folks") and it turns out that most of them live surprisingly frugal and modest lives. The typical millionaire doesn't have two new supersized trucks. You won't see them in fancy-expensive clothes and don't expect a Rolex watch on their wrist. This kind of frugality naturally leads them to spend less than they earn and the excess money is saved and invested.
Ronald is an extreme (lucky?) case because he lived beyond frugally. He wasn't miserly - just super, super, super frugal. Also, his investments exploded upward and compounded several times over. The wealth and the numbers didn't seem to get to him because he saw it grow slowly and organically. He got used to seeing them and acknowledging them that it was a natural part of his financial life. I think he looked at his portfolio like he would a pencil sharpener. It's there on his table, works when he needs it, but leaves it alone otherwise.
Some would say that he could and should have lived it up a little more. Then again, he probably didn't care for those activities and pleasures. He did what he wanted, how we wanted, when he wanted. That right there is living rich to me - complete control over your time on this earth.
I suspect these stories are more common than we realize, just every once in a while they get covered in the media.
Grace Groner is another interesting one. She was a secretary for Abbott Labs who bought some shares in the 30's and never sold. You can imagine how that turned out :) I've known the story for a while, but I believe Abbott mentioned in some of their investor materials recently, so you may see it again.
I remember reading about Ronald Read when he passed away. This was a long, long time before I wanted to become an investor. Stories like Ronald's are more common than we think. I'm sure we're all familiar with the book, "The Millionaire Next Door". In that book we learn the habits of millionaires (i.e. "rich folks") and it turns out that most of them live surprisingly frugal and modest lives. The typical millionaire doesn't have two new supersized trucks. You won't see them in fancy-expensive clothes and don't expect a Rolex watch on their wrist. This kind of frugality naturally leads them to spend less than they earn and the excess money is saved and invested.
Ronald is an extreme (lucky?) case because he lived beyond frugally. He wasn't miserly - just super, super, super frugal. Also, his investments exploded upward and compounded several times over. The wealth and the numbers didn't seem to get to him because he saw it grow slowly and organically. He got used to seeing them and acknowledging them that it was a natural part of his financial life. I think he looked at his portfolio like he would a pencil sharpener. It's there on his table, works when he needs it, but leaves it alone otherwise.
Some would say that he could and should have lived it up a little more. Then again, he probably didn't care for those activities and pleasures. He did what he wanted, how we wanted, when he wanted. That right there is living rich to me - complete control over your time on this earth.
I suspect these stories are more common than we realize, just every once in a while they get covered in the media.
Grace Groner is another interesting one. She was a secretary for Abbott Labs who bought some shares in the 30's and never sold. You can imagine how that turned out :) I've known the story for a while, but I believe Abbott mentioned in some of their investor materials recently, so you may see it again.