I wasn’t planning on posting today, but I stumbled across this article on CNN* and had to share: Vermont man known for frugal ways donates millions.
Ronald Read of Vermont was a World War II veteran, gas station attendant, and janitor known for his frugal ways. He passed away last summer at the age of 92 and left his local library $1.2m, the hospital $4.8m, and friends and family the rest of his approximately $8m fortune.
Of course we don’t know everything about Mr. Read, but one can assume he did very well for himself over his 92 years, although it appears he never had a “high income” profession. According to the article he was extremely frugal and loved investing, specifically in dividend producing stocks.
I did some simple math and it appears he was born in 1922. Even if he began investing at age 30 in 1952, the S&P 500’s average return including dividends was 12.41% through 2014. That means Mr. Read’s money using the Rule of 72 would have doubled every 5.7 years for a total of over 10 times during his 62 years of investing!
If this doesn’t light a fire under your frugal, investing butts, I don’t know what does!
* I also referenced this article: Janitor bequeaths millions to library, hospital