Ronald Read : What Traders can Learn from Him?

As per Wikipedia; Ronald James Read was an American philanthropist, investor, janitor, and gas station attendant. Read grew up in Dummerston, Vermont, in an impoverished farming household. He walked or hitchhiked 4 mi daily to his high school and was the first high school graduate in his family.

We came across an interesting story which stock traders can apply in their trading career.

Ronald Read worked as a gas station attendant and janitor at JC Penney's. He was known to be a frugal man. After losing his wife at 50, he lived alone for the rest of his life and enjoyed chopping wood.

After his death, folks in his community realized he had left two million dollars to his stepchildren and an additional six million dollars to local library and hospital.

How? He consistently invested his savings in (an eventual portfolio of 95) blue-chip companies whose businesses he understood and held their stock for most of the rest of his life.

There are many fascinating lessons from his story – making a life by what we give vs. get, the importance of savings rate, time in the market vs. timing the market, etc.

But, to me, one that always stands out is the transformative power compound interest can have in our life. Small consistent investments in all important areas of our life – health, money, learning, relationships – a compound in magical ways over time. 

The moral of the story for the traders is that Ronald Read showed to the world that one need not earn a six-figure income to become a multimillionaire.

Here's to making one such investment today as by using our stock investment tips, one can be on the path of making good money and leaving a fortune for future generations.