When it comes to investing, evidence and concrete numbers are everything. Nothing beats the hard facts. It may be one thing for me to write about achieving financial freedom using dividend growth investing. But can this strategy work in practice. Does buy and hold investing work in the real world. Can you become a millionaire by simply buying and holding high quality stocks. The stories of everyday buy and hold investors will help answer these questions.
If you pay attention to the news, you end up finding enough clues to uncover some of the secret stock market millionaires; the folks who weren’t watching Bloomberg worried about this quarter’s GDP growth, the monthly inflation rate or the latest unemployment numbers but, instead, took whatever cash they had over the years and looked for the best long-term home to make it generate more cash. They didn’t see the stock market as a casino. Instead, they saw it as a way to buy into great businesses which could compound their wealthy several fold over a lifetime.
These secret buy and hold millionaires are by no means rich folk to begin with. Most fo them are just average Joe’s. They work average jobs with average pay. Heck, some of the people on the list earn incomes below the national average. But their sheer perseverance to buy and hold investing lead them to become dividend millionaires.
Grace Groner is a good example of a typical secret buy and hold millionaire. Grace was nothing more than a secretary during her working career. She worked for 43 years as a secretary for Abbott Laboratories. During that time she bought three shares in the company for $180. She never sold a share, even after repeated stock splits. She also kept reinvesting the dividends. By the time of her death in 2010, she owned more than 100,000 shares valued at about $7 million. By simply buying and holding on to her Abbott shares, she turned $180 into $7 million!
Another example of a secret buy and hold millionaire was Ronald Read. Ronald was a janitor and gas station attendant who earnt a modest salary all his life. But unlike most people, Ronald was savvy with his money and invested in a high quality blue chip stocks such as Procter & Gamble, J.P. Morgan Chase, and Dow Chemical. The investments he made over time proved so successful that upon his death in, Ronald Read had an estimated net worth of around $8 million dollars. Talk about the power of compounding!
One secret buy and hold millionaire closer to home was Margaret Dickinson. Just like Grace Groner and Ronald Read, Margaret Dickinson did not have a high flying city job – her working life was spent as a police officer and a teacher in Scotland. And just like Ms Groner and Mr Reed, Margaret was a savvy investor. At the time of her death in 2013, Margaret had amassed a portfolio worth over £1 million by investing in companies such as Marks & Spencer and British American Tobacco.
Grace Groner, Ronald Reed and Margaret Dickinson are just three examples of secret buy and hold dividend millionaires. They are many more people out there just like the three mentioned and I will be writing a series on these secret buy and hold investors. It will be called the secret buy and hold dividend millionaires club.
This series will explore a variety of people who built a fortune using buy and holding investing. With each case study, I will aim to go into detail as to how they build their wealth and provide key tips to take away. So do keep checking the site to see how you too could join the exclusive secret dividend buy and hold millionaires club.