Ronald Read is a real person! Although he was almost totally anonymous while he was alive, his story is well known now. His wikipedia article (which lists him as a philanthropist) is a pretty good read, pun intended.

During his working career his jobs were a gas station attendant, mechanic, and a part-time janitor at JCPenney. This wasn’t a man making a huge income. But with the money he did make, he did something pretty simple. He spent less than he made and he invested the rest.

Read came from an era before index funds, so instead he simply bought and held stocks. He bought the stocks of big companies like PG&E, CVS, Johnson & Johnson, Chase, GE, and Dow. He held for the long term.

Was he a brilliant stock picker? Probably not. Let’s do the math. He was honorably discharged from the military in 1945. He died in 2014, giving him a 69 year investing time frame. Let’s assume he was penniless in 1945 then made equal monthly investments into average performing stocks in the S&P 500. In order to die with $8M he would have needed to invest less than $60 per month. Obviously, $60 was a lot more back in 1945, but that would have been about $700 in 2014 dollars. A solid chunk of change, but something feasible for someone with his flare for frugality.

So did Ronald Read win at life because he died with all that money? I don’t know! I think how much you die with or how much you spend while you’re alive doesn’t dictate the quality of your life. Rather it comes down to relationships and experiences. Finding happiness and helping people. But he certainly showed that it’s possible, and not all that complicated. Spend less than you make. Invest the difference. Buy and hold for the long term.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Jeremy