Have you ever heard of Ronald Read?
Chances are, you haven't. That is unless you've read (or listened to via audiobook) the excellent Pyschology of Money, by Morgan Housel, which I highly recommend to anyone who wants to learn more about why we do what we do with money, and how we can do it better (https://www.amazon.co.uk/Psychology-Money-Timeless-lessons-happiness/dp/0857197681).
Anyway, back to Ronald. His story is one of the first things you learn about in the book.
He was a man who lived a quiet and humble life in Brattleboro, Vermont and was born in 1921. So forgive me, but this story will have an American tilt to it.
He worked as a petrol station attendant and a cleaner for most of his life, seemingly an ordinary person in every aspect.
However, upon his passing in 2014, it was revealed that Ronald had amassed a fortune of over $8 million. From this he gave $2m to family and the other $6m to the local hospital and library.
His story became widely known because of the stark contrast between his unassuming lifestyle and his substantial wealth. Ronald was known for his frugality and lived modestly, driving an old car, wearing second-hand clothes, and eating at local diners. He enjoyed gardening and woodworking.
Friends and relatives were baffled by how someone with such a simple lifestyle could accumulate such wealth.
Upon further investigation, it was discovered that Ronald had been an avid investor. He had quietly built his wealth over decades by investing in blue-chip stocks and dividend-paying companies. He saved what little money he could each month, and his investment strategy was conservative, patient, and disciplined. Instead of trying to time the market or chase after the latest trends, Ronald followed a buy-and-hold approach, allowing his investments to grow steadily over time.
The story of Ronald Read teaches us several valuable lessons:
Live Below Your Means: Despite having a significant amount of wealth, Ronald lived well below his means. He didn't feel the need to show off his wealth through extravagant purchases or lifestyle choices. Instead, he focused on living simply and saving and investing his money wisely. Some of the most well-off people I've ever met looked and acted like a normal person, and not like an influencer.
Consistency and Patience: Ronald's wealth didn't come overnight. It was the result of consistent and disciplined investing over many years. He understood the power of compounding and was patient enough to let his investments grow steadily over time. When recessions occured, he didn't panic. He didn't need those investments to fund his lifestyle, as he lived below his means. So he kept his cool when others would have panicked.
Simplicity in Investing: Ronald's investment strategy was straightforward and uncomplicated. He didn't engage in complex trading strategies or try to beat the market. Instead, he focused on investing in solid, well-established companies and holding onto those investments for the long term.
Humility and Privacy: Despite his wealth, Ronald remained humble and private. He didn't seek attention or recognition for his financial success. Instead, he lived a quiet and modest life, staying true to his values and principles.
Overall, Ronald Read's story serves as a reminder that wealth accumulation doesn't require flashy investments or extravagant lifestyles. By living below your means, investing wisely, and being patient, it's possible to build significant wealth over time.
Ronald did fantastically well to build up that level of wealth. By following those four key pillars outlined above, nobody had any idea how wealthy he had become, and he was bullet-proof financially.
But did he ever make the most of it?
I'll leave that for you to decide.
If you'd like to talk to us about your situation to see if Financial Planning can help, you can book in an initial consultation here:
Otherwise, see you next time.
The information contained within this blog post should not be taken as financial advice, as it does not take account of personal circumstances, which would affect advice given. Should you wish to talk to us about personalised advice for you, we'd be happy to do so.