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Ronald did it right. Living frugal and investing in blue chips. Diversification reduced his risk. Reinvesting dividends grew the dividend snowball. Kept it a secret and donated his money. Be like Ronald 😂 Really interesting story 👍
The fact he left his equity to those who had cared for him in his later years shows what an appreciative, thoughtful and kind man he was. Total respect.
Ronald R. Should be the retail investor's hero. We all should have a picture of him next to our investing spreadsheet. He is the proof that even if you are poor, it is possible to retire comfortably - or even rich - if you do this systematically. You don't even need to go 100% frugal mode as Ronald R. did...even if you get 20% of what he had, you still will be a millionaire.
For all the people saying he didn't get to enjoy the fruits of his labor: He didn't need to. He was content in life and had everything he needed to be happy. Very few people achieve this, always wanting more. Maybe the thought of leaving those big donations gave him continuous joy.
I heard this story before and the cool thing about this story is I’m a BGW ( Buildings and Grounds Worker) for LAUSD, basically a janitor and I like dividend investing, my goal is FIRE and dividend investing is one of the ways I plan on reaching FIRE
What makes this more impressive is the time period this was done. In the last decade or so this info of how to build wealth and the brokers exist to make it all very easy for us. In his time period this was not common sense at all, very few people owned stocks. Researching them and buying them were much more work and costlier with heavy commissions. He kept this to himself probably because for the first half people would think he is nuts. Back in those days people had pensions and if they wanted to put extra money away they bought savings bonds or put it in the bank.
Overall I think this is story is valuable to teach the lesson of investing. However I can’t help but feel he could have gotten his wealth quicker investing in growth stocks (of course I would need to crunch numbers). Considering he lived his life very frugal and probably never actually enjoyed his money because it took so long for his dividends compounding effect to be significant.
Enjoying one's money is subjective.. maybe he did enjoy having the security of doing what he wanted, i.e. being around those he loved, eating what he wants, taking a nap when he wants, watching his sports team win big games, having debates with his mates etc.
The problem with growth stocks is that many of them fail, so you need to be really good at choosing the right ones. If you take any successful growth stock, go back in time and look for other companies in the same area you'll see that many did not make it. If it was so easy to just make more money with growth stock then everyone would do it which would make value stock cheaper which would destroy the effect of growth stock being an better investment
Definitely agree. Amassing that kind of fortune only to leave it to someone else to spend is anything but inspirational. Especially if you’re leaving it to company’s.
I always find it funny when people from the USA say live below your means. I don't really know anywhere else in the world where credit cards are available to everybody with a pulse. Where i live i had to search to find a credit card provider. Literally nobody uses them, thus, people can't really live above their means.
Living below one’s means isn’t just about avoiding consumer debt, it mainly refers to living a modest lifestyle and avoiding lifestyle inflation whilst not living pay check to pay check.
@@mitchrils i know. but the easiest way to do that is spending money on things YOU CAN'T AFFORD, by using a very simple motion. SWIPE. If i were to buy let's say a 3k tv, my bank card would simply decline.
@@TheHighborn A really good point. My mom had/has a credit card and I swore to never get one, no matter what happens. I never owed anyone any money. But I did get stuck in the mindset of :"Well, I can´t really afford anything(like a house or a good car), so I might as well spend the money on little things I can enjoy(buying happiness with nice shoes, good food and so)". Saving money can be hard, if you can only save just a little. It takes patience and time to accumulate any real wealth if you have a low income job.
@@SuperCrazyEstonian whenever i get my salary it's just a funny number on the screen, so might is well put some of it to stocks, so i'll get bigger funny numbers. That's literally my thought process and i treat my brokerage account like a scoreboard on a video game.
Living below your means plus investing works! It is all about cash flow and compounding. Dividends is one of the best compounding vehicles around. Thanks for the video.
The funny thing is, this could be the story for millions upon millions of people, becoming wealthy isn't luck nor fate, it is hard work, consistency and patience. The problem today is our get rich by Tuesday mindset coupled with the victimhood far too many choose to live in... Get busy building your future or remain busy complaining about what could have been..
The odds are not in their favor if only 15% of the population have 1 million cash at any one time. People are trying to avoid being broke but cost rise faster than wages so.....
Amazing incredible beautiful unique after more than a year I request this in your channel finally this story is here thanks so much God Bless You I will share with you some more stories that you can share in this channel thanks God Bless You.
Hello everyone, I was wondering if anyone knew where I could get or make a copy of his excel spreadsheet which he uses in his video (The Power of Dividend Investing | The Snowball Effect). Thought it was cool and have tried recreating it but not sure of all the correct equations. Thanks :)
Yo, I’m wondering if I should sell my growth stocks and instead invest in dividend stocks. What do y’all think? My growth stocks are TDOC, TRUP, PLTR, Z, and LMND. I’m trying to hold because I think they might go up but I hate the idea of selling in order to make a profit. I want to hold the company forever and make money off of it forever. What do y’all think?
If your goal is to hold companies for a very long time and make money off it forever that sounds exactly like dividend investing. So I’d recommend to look into good quality dividend stocks to invest in.
Dividend growth stocks are the way, why make the assumption a stock like pltr is going to make money when Pepsico will pay you a greater amount of money every year just for holding (growing) equity of the company.
@@ryw00d Well some people say stuff like "dividend investors missed out on the boom of Amazon and stuff." For me, I just like the idea of receiving a yield.... but something like a 1000% return sounds really nice but the whole thing with growth investing is WHEN DO YOU SELL? What if you sell to early or too late? That's why I don't know. I could sell those growth stocks and instead put it into something like UPS, APD, PPG, and FDX. All of them seem to be down and offering good yields but I would be giving up possible high growth stocks. What do you think?
@MikeProductions1000 Well some people say stuff like "dividend investors missed out on the boom of Amazon and stuff." For me, I just like the idea of receiving a yield.... but something like a 1000% return sounds really nice but the whole thing with growth investing is WHEN DO YOU SELL? What if you sell to early or too late? That's why I don't know. I could sell those growth stocks and instead put it into something like UPS, APD, PPG, and FDX. All of them seem to be down and offering good yields but I would be giving up possible high growth stocks. What do you think?
Catching the investing bug really kicks off when you earn enough dividends to purchase a single stock, knowing that that stock bought with dividends will pay you dividends from now into perpetuity.
To get to 8 million he needed to have invested a lot before which means he needed to earn relatively much. If I take the median income of the US from today, use a historical return per year, assume they'll work for a very long time and assume they'll invest all of it, even then it doesn't come to 8 million.
All good ideas but unfortunately he started back when your wage went further. You could realistically buy a house on a years wage, utilities were cheaper and you didn’t have mobiles and other tech that is now part of everyday life. The important thing is to be realistic about what you can do, you only live once it’s important you do what you can enjoy and be the best at it.
An example of the power of compounding: $10k invested at a return of 8% per year on average which you will get from an index tracker will give you $43 Quadrillion dollars after 400 years! Maybe set up a fund for your Great Great Great Great Great Great Great Great Great Great Great Great Great Great Grandson of the future and they can buy the presidency having your family name live on for eternity. Now that's long term planning.
back when the money used to be valuable, these days u see massive spikes in stocks, just before opening hours, billions suddenly appear or dissapear . I would say if u want to see a portfolio like that, crypto is much safer nowadays than stocks .
Yes interesting...I wonder how much of those 8mil he made in the last years of his life. I wouldn't be surprised if he got about half of it in his last 10-20 years...Compounding!
It's crazy to think that pretty soon the next huge dividend payers are the kings of software that were the dot com speculation of our parent's investing journies.
Great! I personally love proving people wrong but investing in bitcoin for me has not been impressing. How much exactly do you make of you don't mind me asking
But what is the point of living like that? He deprived himself from simple treats, lived as a miser and most of his money got inherited by his relatives, who probably blew off the money. Is that a good example? I don't think so.
I mean he didn’t spend his money on material nothingness and retired with millions, doesn’t seem too bad to me. Everyone has different ways they look at money and if more people thought like this guy we wouldn’t have the amount of financial illiteracy we have now.
No lie after he hit 1 million in savings, he could’ve cooled off a bit, I’ve met a few stingy people like that working 80 plus hour weeks using tape to hold their shoes together like what the fuck
Why do people ignore income? I also love how they do not mention how many places you could live on low wages. Now there are few places that are survivable on the lowest incomes. Income is the most important part because saving and investing is impossible without it!!
@@zrk03 To obtain that kind of wealth legally, it takes time. It's slow and boring as hell if you clock the progress but at least you and your heirs are secured. Also, you have something to leave for your children so that they won't have to wait a lifetime like he did. His steps sons are set for life. That's what its really about. I see people in the comment section project their opinions on he spent his life without know what actually made him happy or whether he had any regrets. If traveling the world wasn't of interest to him does this mean that he lived a less fulfilling life? People are probably thinking, If i had his money, i would have traveled to world, skydive, screw a bunch of women, what ever in their mind is fun to them? What if he already done some of that before he got married? What if he actually enjoyed the simplicity of getting his coffee and not having to worry about people asking him for money. That's the shit that happens when you floss and tell everyone your business. They ask you to borrow money.
Are you following Ronald Read's principles?
Join the Discord: www.patreon.com/DividendData
Find out when my website launches: mailchi.mp/feeb5111f5b1/dividend-data
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Subscribe: ruclips.net/channel/UCZ5V5HyAvkFrjsWkANqXscQr
Ronald did it right. Living frugal and investing in blue chips. Diversification reduced his risk. Reinvesting dividends grew the dividend snowball. Kept it a secret and donated his money. Be like Ronald 😂 Really interesting story 👍
The fact he left his equity to those who had cared for him in his later years shows what an appreciative, thoughtful and kind man he was. Total respect.
Ronald R. Should be the retail investor's hero.
We all should have a picture of him next to our investing spreadsheet.
He is the proof that even if you are poor, it is possible to retire comfortably - or even rich - if you do this systematically.
You don't even need to go 100% frugal mode as Ronald R. did...even if you get 20% of what he had, you still will be a millionaire.
For all the people saying he didn't get to enjoy the fruits of his labor: He didn't need to. He was content in life and had everything he needed to be happy. Very few people achieve this, always wanting more. Maybe the thought of leaving those big donations gave him continuous joy.
I heard this story before and the cool thing about this story is I’m a BGW ( Buildings and Grounds Worker) for LAUSD, basically a janitor and I like dividend investing, my goal is FIRE and dividend investing is one of the ways I plan on reaching FIRE
That's awesome! You can definitely do it, as long as you stay consistent
As a complete stranger from the internet idk if this helps but I believe in you
@@rocketleaves9651 Positive energy is always welcomed. May you do well investing also.
Traders: Wolf of Wall Street!
Investors: Ronald Read
Damn I like this one!
Love that you have made a smaller video this week while still working on the website so we don't go without content.
This guy gets it 👆
What makes this more impressive is the time period this was done. In the last decade or so this info of how to build wealth and the brokers exist to make it all very easy for us. In his time period this was not common sense at all, very few people owned stocks. Researching them and buying them were much more work and costlier with heavy commissions. He kept this to himself probably because for the first half people would think he is nuts. Back in those days people had pensions and if they wanted to put extra money away they bought savings bonds or put it in the bank.
If janitor could do it, you can do it.
Overall I think this is story is valuable to teach the lesson of investing. However I can’t help but feel he could have gotten his wealth quicker investing in growth stocks (of course I would need to crunch numbers). Considering he lived his life very frugal and probably never actually enjoyed his money because it took so long for his dividends compounding effect to be significant.
I agree :)
Enjoying one's money is subjective.. maybe he did enjoy having the security of doing what he wanted, i.e. being around those he loved, eating what he wants, taking a nap when he wants, watching his sports team win big games, having debates with his mates etc.
The problem with growth stocks is that many of them fail, so you need to be really good at choosing the right ones. If you take any successful growth stock, go back in time and look for other companies in the same area you'll see that many did not make it. If it was so easy to just make more money with growth stock then everyone would do it which would make value stock cheaper which would destroy the effect of growth stock being an better investment
You don't know which are the successful growth stocks until they've already grown. Especially with the stocks available when this guy started.
@@chrissambrook84 you make a valid point. Either way he lived a successful life, so all credit to him
Sad that the money was probably squandered by some stupid admin or politician.
Yup, they probably stole shit load of money from donation.
Definitely agree. Amassing that kind of fortune only to leave it to someone else to spend is anything but inspirational. Especially if you’re leaving it to company’s.
I always find it funny when people from the USA say live below your means. I don't really know anywhere else in the world where credit cards are available to everybody with a pulse.
Where i live i had to search to find a credit card provider. Literally nobody uses them, thus, people can't really live above their means.
Living below one’s means isn’t just about avoiding consumer debt, it mainly refers to living a modest lifestyle and avoiding lifestyle inflation whilst not living pay check to pay check.
@@mitchrils i know. but the easiest way to do that is spending money on things YOU CAN'T AFFORD, by using a very simple motion. SWIPE.
If i were to buy let's say a 3k tv, my bank card would simply decline.
@@TheHighborn Yeah I get your point. For people with impulsive tendencies they can be a financial tombstone.
@@TheHighborn A really good point. My mom had/has a credit card and I swore to never get one, no matter what happens. I never owed anyone any money.
But I did get stuck in the mindset of :"Well, I can´t really afford anything(like a house or a good car), so I might as well spend the money on little things I can enjoy(buying happiness with nice shoes, good food and so)".
Saving money can be hard, if you can only save just a little. It takes patience and time to accumulate any real wealth if you have a low income job.
@@SuperCrazyEstonian whenever i get my salary it's just a funny number on the screen, so might is well put some of it to stocks, so i'll get bigger funny numbers. That's literally my thought process and i treat my brokerage account like a scoreboard on a video game.
There's an old saying, "You've got to spend money to make money", but in reality, not spending money can generate a lot of wealth!
He invested which is spending money
Living below your means plus investing works! It is all about cash flow and compounding. Dividends is one of the best compounding vehicles around. Thanks for the video.
The funny thing is, this could be the story for millions upon millions of people, becoming wealthy isn't luck nor fate, it is hard work, consistency and patience. The problem today is our get rich by Tuesday mindset coupled with the victimhood far too many choose to live in... Get busy building your future or remain busy complaining about what could have been..
The odds are not in their favor if only 15% of the population have 1 million cash at any one time. People are trying to avoid being broke but cost rise faster than wages so.....
Amazing incredible beautiful unique after more than a year I request this in your channel finally this story is here thanks so much God Bless You I will share with you some more stories that you can share in this channel thanks God Bless You.
What a great story. Compound investing is not that hard with the right mindset. Thank you for sharing.
That’s why I tell my friends it’s not always about how much you make
It always is. You can't save/invest more money then you make
@@tomlxyz it's about how much you spend more than how much you make.
@@tomlxyz its about how much you spend and invest than how much you make.
Hello everyone, I was wondering if anyone knew where I could get or make a copy of his excel spreadsheet which he uses in his video (The Power of Dividend Investing | The Snowball Effect). Thought it was cool and have tried recreating it but not sure of all the correct equations. Thanks :)
Yo, I’m wondering if I should sell my growth stocks and instead invest in dividend stocks. What do y’all think? My growth stocks are TDOC, TRUP, PLTR, Z, and LMND. I’m trying to hold because I think they might go up but I hate the idea of selling in order to make a profit. I want to hold the company forever and make money off of it forever. What do y’all think?
If your goal is to hold companies for a very long time and make money off it forever that sounds exactly like dividend investing. So I’d recommend to look into good quality dividend stocks to invest in.
Dividend growth stocks are the way, why make the assumption a stock like pltr is going to make money when Pepsico will pay you a greater amount of money every year just for holding (growing) equity of the company.
@@ryw00d Well some people say stuff like "dividend investors missed out on the boom of Amazon and stuff." For me, I just like the idea of receiving a yield.... but something like a 1000% return sounds really nice but the whole thing with growth investing is WHEN DO YOU SELL? What if you sell to early or too late? That's why I don't know. I could sell those growth stocks and instead put it into something like UPS, APD, PPG, and FDX. All of them seem to be down and offering good yields but I would be giving up possible high growth stocks. What do you think?
@MikeProductions1000 Well some people say stuff like "dividend investors missed out on the boom of Amazon and stuff." For me, I just like the idea of receiving a yield.... but something like a 1000% return sounds really nice but the whole thing with growth investing is WHEN DO YOU SELL? What if you sell to early or too late? That's why I don't know. I could sell those growth stocks and instead put it into something like UPS, APD, PPG, and FDX. All of them seem to be down and offering good yields but I would be giving up possible high growth stocks. What do you think?
Catching the investing bug really kicks off when you earn enough dividends to purchase a single stock, knowing that that stock bought with dividends will pay you dividends from now into perpetuity.
Quick, informative and straight to the point 👌🏻
Would you please do a video of Mr Earl the parking lot attendant from Baltimore MD thanks
To get to 8 million he needed to have invested a lot before which means he needed to earn relatively much.
If I take the median income of the US from today, use a historical return per year, assume they'll work for a very long time and assume they'll invest all of it, even then it doesn't come to 8 million.
He reinvested the money from dividends that he earned and never touched the principal.
All good ideas but unfortunately he started back when your wage went further. You could realistically buy a house on a years wage, utilities were cheaper and you didn’t have mobiles and other tech that is now part of everyday life.
The important thing is to be realistic about what you can do, you only live once it’s important you do what you can enjoy and be the best at it.
An example of the power of compounding: $10k invested at a return of 8% per year on average which you will get from an index tracker will give you $43 Quadrillion dollars after 400 years! Maybe set up a fund for your Great Great Great Great Great Great Great Great Great Great Great Great Great Great Grandson of the future and they can buy the presidency having your family name live on for eternity. Now that's long term planning.
back when the money used to be valuable, these days u see massive spikes in stocks, just before opening hours, billions suddenly appear or dissapear . I would say if u want to see a portfolio like that, crypto is much safer nowadays than stocks .
Crypto safe? I own a bit of bitcoin but come on man that is not good advice.
yep, blue chips and SP500 are all i need in my life
The amazing compounding!
More stories like this!
Yes interesting...I wonder how much of those 8mil he made in the last years of his life. I wouldn't be surprised if he got about half of it in his last 10-20 years...Compounding!
It's crazy to think that pretty soon the next huge dividend payers are the kings of software that were the dot com speculation of our parent's investing journies.
How do you track your dividends?
Whatever app you use tells you how much dividend is for that company ,when they pay it etc.
Incredible guy
great story
Waiting for ”lets roll the intro” 😉
Bro, if he can do it, we can do it
Great! I personally love proving people wrong but investing in bitcoin for me has not been impressing. How much exactly do you make of you don't mind me asking
And he got old…. I need faster money right now while I’m handsome and young.
and now he is dead. Never enjoyed his millions... impressive in many ways.
Ronald really a straight g tho
Can you do the video of Sylvia Bloom the secretary thanks
Was expecting a story about Walter White.
Started the video: saw Walter White.
great ideal
But what is the point of living like that? He deprived himself from simple treats, lived as a miser and most of his money got inherited by his relatives, who probably blew off the money. Is that a good example? I don't think so.
I mean he didn’t spend his money on material nothingness and retired with millions, doesn’t seem too bad to me. Everyone has different ways they look at money and if more people thought like this guy we wouldn’t have the amount of financial illiteracy we have now.
Good luck the good ole days are over now 1 in a million can do that!
Pov you bought into GME
Wonder what his salary was tho
It doesn't matter. He didn't blow his money
@@abyss104 True. Consistency in the stock market is key.
@@AMVLifez slow and boring but steady.
the problem is... he did not enjoy what he earned
You can have my like.
Yeah and he didn’t live to enjoy his wealth. There should be a limit at when you stop living frugal.
No lie after he hit 1 million in savings, he could’ve cooled off a bit, I’ve met a few stingy people like that working 80 plus hour weeks using tape to hold their shoes together like what the fuck
He did want he wanted to do
Notification squad!
Yeah he may have been a janitor and mechanic…but being prior military, I’m sure he was getting disability which would bring his income a lot more
Why do people ignore income? I also love how they do not mention how many places you could live on low wages. Now there are few places that are survivable on the lowest incomes. Income is the most important part because saving and investing is impossible without it!!
Sacrified living for investing... Nah.
Dude you have to stop using the Wolf of Wall Street clips. Anyone idolizing that movie or story misses the point entirely.
What sad about this story is that he was so frugal that he never gets to enjoy the fruits of labor.
im 22 years old. i will put 1500$ into investments every mouth untill im 40 years old :) wish me luck!
@bill tedi am planning to live very cheap and invest all my money for the next 10 years, and im currently working 60hours a week :)
Damn, you have to live a long ass time though. On his salary it's impossible to get that much wealth without living that long
You guys still don't get it. Its about consistency in buying what you can a little at a time. Regardless of the market.
@@abyss104 So? I don't disagree with you. Still, the average person on his salary has to live a long as time to accumulate that much wealth.
@@zrk03 To obtain that kind of wealth legally, it takes time. It's slow and boring as hell if you clock the progress but at least you and your heirs are secured. Also, you have something to leave for your children so that they won't have to wait a lifetime like he did. His steps sons are set for life. That's what its really about. I see people in the comment section project their opinions on he spent his life without know what actually made him happy or whether he had any regrets. If traveling the world wasn't of interest to him does this mean that he lived a less fulfilling life? People are probably thinking, If i had his money, i would have traveled to world, skydive, screw a bunch of women, what ever in their mind is fun to them? What if he already done some of that before he got married? What if he actually enjoyed the simplicity of getting his coffee and not having to worry about people asking him for money. That's the shit that happens when you floss and tell everyone your business. They ask you to borrow money.
You are very late to this story.