Sweeping for 17 Years, Earning Rs.68 Crores, Collecting Money in This Easy Way Without Any Hassle
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Ronald Reed, a sweeper, amassed a fortune of Rs 68 crore by investing in blue-chip companies alone. Reid patiently invested in dividend stocks and held them for long periods, leaving him with a large portfolio at the time of his death.
Highlights
- An ordinary sweeper became a millionaire.
- Investment Lessons: Patience and Investing in Blue Chip Stocks
- A wealth of over Rs 68 crore was created through long-term investments.
New Delhi. If you meet any good stock market expert, 9 times out of 10 you will hear the same thing – ‘city ground’. This means stop thinking about making quick bucks from the stock market and become a long-term horse. If you stick around for a long time, you don’t need to try too many fancy tricks to make money. Dhirendra Kumar, CEO of Value Research, explains the power of simple investing with interesting anecdotes in one of his articles.
In this article written by Kumar in ET, he tells the story of an American man who worked at a petrol pump for 25 years and then worked as a janitorial (cleaner) in a company for 17 years. The man’s name was Ronald Reed. When Reed died in 2014, he left behind a fund worth more than $8 million, or Rs 68 crore. Kumar says Reid earned the money from jobs where he was paid very average wages.
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How did Red become a millionaire?
Kumar writes that Reid never adopted a very high investment strategy. He patiently invested his money in blue-chip companies. Reid never considered investing in a trading tech stock he didn’t understand. When he died, he had 95 shares in his portfolio. Most of these shares were of large companies. Reed invested in stocks like P&G, Johnson & Johnson and CVS Health.
Simple investment strategy
Kumar writes that Reid’s investment strategy was simple – invest in quality stocks that pay dividends, then buy and sell shares with that dividend. It didn’t matter much because his portfolio was very diversified and this loss was very minor for him. According to Kumar, Reed’s story is a lesson for Indian investors. Just as Reid found it right to invest in blue-chip companies in the US, there are many quality stocks in India that have a history of excellent returns. These companies may not be the talk of the town on social media, but they have made good fortunes over the long term.
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