This janitor in Vermont amassed an $8M fortune without anyone around him knowing. Here are the 3 simple techniques that made Ronald Read rich — and can do the same for you

Must read

21 Pairs Of Baggy Pants To Try If You’re Done With Skinny Jeans

Ten years ago, if you had asked us to put on a pair of pants that weren't skin-tight, we'd have rolled our eyes in...

Boeing Earnings: Smaller Losses Seen, Cash Flow In Spotlight After Sweeping Deal

Boeing (BA) prepares to report earnings for the third quarter early Wednesday, while a sweeping new financial deal with jet supplier Spirit AeroSystems...

THY ART IS MURDER Barely Apologizes For Vocalist’s Anti-Trans Posts

Thy Art Is Murder vocalist CJ McMahon quit social media a...

Warren Buffett is reported to have once said, “You don’t need to have extraordinary effort to achieve extraordinary results. You just need to do the ordinary, everyday things exceptionally well.”

It might sound too simplistic to be true, but if you doubt the Oracle of Omaha’s wisdom, you should hear the story of Ronald Read.

Read, a retired gas station attendant and janitor in Vermont, passed away in 2015. Nothing about his life or death was extraordinary, except for the fact that his estate was revealed to be worth $8 million after he passed away.

This was a surprise to much of Read’s local community. “He was a hard worker, but I don’t think anybody had an idea that he was a multimillionaire,” his stepson told the local press after his death.

Read didn’t have the type of career path you’d typically associate with a multimillionaire. So how did he pull it off? Here’s a closer look at the three simple techniques that made him so wealthy.

This janitor in Vermont amassed an $8M fortune without anyone around him knowing. Here are the 3 simple techniques that made Ronald Read rich — and can do the same for you

This janitor in Vermont amassed an $8M fortune without anyone around him knowing. Here are the 3 simple techniques that made Ronald Read rich — and can do the same for you

Don’t miss

Frugality

Ronald Read seems to have had a reputation for being extremely frugal. In fact, he likely could have given Buffett — who is famously frugal — a run for his money.

Read’s friends remember him driving a second-hand car and using safety pins to hold his worn-out coat together. He even continued to cut his own firewood well after his 90th birthday.

It’s a painfully straightforward approach: Spending less than you earn leaves you more to invest and generate wealth over time through investments.

“I’m sure if he earned $50 in a week, he probably invested $40 of it,” said Read’s friend and neighbor, Mark Richard, according to CNBC.

Investments

After he died, the Wall Street Journal analyzed Read’s personal portfolio. They discovered that many of his positions were held for several years — if not decades — and had delivered immense returns over that period.

In 2015, Read’s portfolio included heavyweights like Wells Fargo (NYSE:WFC), Procter & Gamble (NYSE:PG) and Colgate-Palmolive (NYSE:CL).

Read more: Here’s the average salary each generation says they need to feel ‘financially healthy.’ Gen Z requires a whopping $171K/year — but how do your own expectations compare?

Again, here’s another parallel between Read and Buffett. If those names sound familiar it’s probably because you’ve seen some of them on Buffett’s portfolio too. In fact, Berkshire Hathaway had a sizable position in Wells Fargo for several years and Procter and Gamble is still part of the portfolio.

Both investors prioritized holding long-term positions in undervalued and overlooked companies. That’s what helped Read create his multimillion-dollar fortune. However, for both investors, the key ingredient was time — and patience.

Longevity

Ronald Read lived to 92 and Buffett is 92 years old now. Both investors have benefitted immensely from living and working longer than average. In fact, 90% of Buffett’s fortune was generated after his 60th birthday. If he’d retired early in his 50s, most people would have never heard of Warren Buffett.

The power of compounding is magnified over longer time horizons. In other words, investing for longer is more likely to deliver better returns. Buffett’s compounded annual growth rate of 9.17% would have turned $1,000 into $9,000 in 25 years and $13,900 in 30 years.

To be fair, none of us can control how long we live. Instead, starting early and staying in the market for as long as possible is probably the best strategy. It’s also advisable to let your winners ride for longer. Taking profits too early or trading your positions too frequently adds costs and diminishes the power of compounding.

What to read next

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

More articles

Latest article

GOP Border Fraud Exposed As House Republicans Refuse To Stay In Session To Pass Deal

Republicans want to go home for Christmas, and Speaker Mike Johnson made it clear that he won’t keep the House in session...

Jamie Raskin Names The Republican Hypocrites Who Defied Congressional Subpoenas

Rep. Jamie Raskin (D-MD) named the House Republicans who are pursuing contempt charges against Hunter Biden while they defied congressional subpoenas. Jamie...

DEMONSTEALER Recruits BLOTTED SCIENCE & AUGURY Members For “Monolith Of Hate”

Demonstealer, the project headed up by Sahil Makhija, is now streaming...

How Howard Maue Became a Top Marketing Expert for Health and Fitness Brands

As more shoppers opt for online shopping, digital marketing becomes increasingly important for success. Consequently, this has also made the space more competitive. There...

Pregnancy Didn’t Change My Personal Style — It Made It Better

Photo: Robin Black/Beauty is BoringWhen I first found out I was pregnant in January 2020, I was excited at the thought of my impending...