Petrol Pump Worker Earns 55 Crores from STOCK MARKET | Great Investing Story | Business Case Study

Summary

In this inspiring video, Bharachakur narrates the extraordinary tale of Ronald James Reed, an ordinary janitor who amassed a fortune of 55 crore rupees through astute stock market investments. Despite having no formal financial education, Reed's dedication to learning and diversification strategy, coupled with a minimalist lifestyle and a passion for giving back, exemplifies that success in the stock market is attainable through knowledge, discipline, and genuine interest, not just wealth or professional guidance.

Takeaways

• 📈 Ronald James Reed, a janitor, made 55 crore rupees from the stock market, challenging the belief that large capital and professional help are needed to succeed.
• 🤯 Ronald's story is inspirational, demonstrating that smart people with fancy degrees can fail in the stock market while ordinary people can succeed.
• 🚶‍♂️ Ronald came from a humble background, was the first high school graduate in his family, and worked as a gas station attendant and janitor.
• 📚 His life changed when he started going to the library, developing a genuine interest in how money works, particularly in the stock market and finance.
• 💡 Ronald diversified his investments across various industries, such as healthcare, telecommunication, and banks, which helped him manage risk.
• 📊 He mainly invested in dividend stocks, reinvesting the dividends to further diversify his portfolio, avoiding technology companies he didn’t understand.
• 🧠 Ronald’s success was attributed to his minimalist lifestyle, focusing on financial discipline and spending only on necessary things.
• 💰 He believed in becoming truly wealthy rather than just appearing rich, avoiding fancy cars and luxury homes.
• 🤝 Ronald donated his wealth to charity, including 4.8 million dollars to a hospital and 1.2 million dollars to a library, showing his commitment to giving back to society.
• 🎯 His passion for understanding investment and finance, rather than making quick money, drove his success in the stock market.

Q & A

What were the two common beliefs Bharachakur had about making big money in the stock market before his views were challenged?

Bharachakur initially believed that making big money in the stock market required large capital to invest and professional help or guidance.

Who was Ronald James Reed and what was surprising about his story?

Ronald James Reed was a sweeper who made 55 crore rupees from the stock market, which was surprising because he had no professional financial guidance and came from a humble background.

What was Ronald James Reed's profession before he started working as a janitor?

Before working as a janitor, Ronald James Reed worked as a gas station attendant for about 34 years.

How did Ronald James Reed's investment strategy involve diversification?

Ronald James Reed diversified his investment across various industries such as healthcare, telecommunication, public utilities, rail transport, banks, and consumer goods, which helped minimize the impact of any single stock's poor performance on his overall portfolio.

What was the significance of the Wall Street Journal to Ronald James Reed's investment education?

The Wall Street Journal played a role in Ronald James Reed's investment education as he spent hours reading it, which contributed to his knowledge and skill in picking the right stocks.

Why did Ronald James Reed not invest in technology companies?

Ronald James Reed did not invest in technology companies because he had no knowledge or understanding of the technology sector, adhering to the principle of investing in what one knows.

What is the difference between being 'rich' and 'wealthy' as explained in the book 'The Psychology of Money'?

In 'The Psychology of Money', being 'rich' is associated with visible signs of wealth such as luxury cars and houses, whereas being 'wealthy' refers to having substantial assets that may not be visible to others.

What was Ronald James Reed's lifestyle like, and how did it contribute to his wealth?

Ronald James Reed lived a simple and normal lifestyle, not indulging in luxury cars or houses. His frugality and focus on building assets rather than displaying wealth allowed him to accumulate significant wealth in the form of stocks.

How did Ronald James Reed's investment strategy protect him from the dot-com bubble in the 1990s?

Ronald James Reed's investment strategy of diversification and focusing on sectors he understood well protected him from the dot-com bubble, as he did not invest in technology companies.

What were Ronald James Reed's charitable contributions after his death?

After his death, Ronald James Reed donated two million dollars to his stepchildren, 4.8 million dollars to the Memorial Hospital, and 1.2 million dollars to the Brooks Memorial Library.

What lessons can be learned from Ronald James Reed's story about investment and financial success?

Lessons from Ronald James Reed's story include the importance of minimalism, financial discipline, investing in what you know, and giving back to society. His success was driven by genuine interest in investment and finance, not by the desire for a rich lifestyle.

Outlines

00:00

📈 The Surprising Wealth of Ronald James Reed

The narrator, Bharachakur, introduces a surprising story of Ronald James Reed, a janitor who amassed 55 crore rupees through stock market investments. Despite Reed's modest occupation, he secretly accumulated substantial wealth, challenging the notion that large capital and professional guidance are prerequisites for stock market success. The narrator aims to inspire viewers with Reed's story, emphasizing that anyone can achieve financial success with the right strategy.

05:01

📚 Ronald Reed's Humble Beginnings and Investment Journey

Ronald James Reed, an American janitor and gas station attendant, came from a humble background. He worked various jobs, including serving as a military policeman during World War II, before retiring as a gas station attendant at 58. Reed continued working as a janitor until 1997. Despite his low-income jobs, Reed secretly amassed a fortune in the stock market, surprising his family and friends upon his death in 2014. His success story parallels that of a secret superhero, highlighting his exceptional investment acumen.

10:03

🗂 Ronald Reed's Investment Strategy and Lifestyle

Reed's investment strategy was rooted in simplicity and discipline. He frequented a local library, studying finance and stock market strategies through books and the Wall Street Journal. Reed's portfolio of 95 diversified stocks across various industries, excluding technology, protected him from major market downturns. His preference for dividend stocks allowed him to reinvest earnings, further strengthening his portfolio. Reed's frugal lifestyle, focused on needs rather than luxury, was key to his financial success.

🏠 The Difference Between Being Rich and Being Wealthy

The narrator contrasts being rich and being wealthy using the example of a friend named Tarun, who appears rich but is financially overextended due to loans for a luxury car and apartment. In contrast, Reed's wealth was not visible through flashy assets but was hidden in his stock portfolio. The narrator emphasizes that true wealth comes from appreciating assets and financial discipline, rather than outward appearances.

🎁 Lessons in Minimalism and Giving Back

Reed's lifestyle exemplified minimalism, focusing on essential expenses and avoiding unnecessary luxuries. He chose to be remembered for his charitable contributions rather than material wealth. Upon his death, Reed donated significant sums to his stepchildren, a local hospital, and a library, underscoring his philanthropic values. His story teaches the importance of genuine interest in finance, disciplined investing, and the value of giving back to society.

🧠 The Passion Behind Ronald Reed's Success

The narrator attributes Reed's success to his genuine passion for investing and finance. Unlike those seeking quick profits, Reed's dedication to understanding the stock market and his humble approach led to his financial achievements. The story serves as a reminder that success in the stock market doesn't require a high income or professional degree, but rather a deep interest and disciplined strategy. The narrator encourages viewers to like, subscribe, and stay tuned for more inspiring case studies.

Keywords

💡Stock Market

The stock market is a platform where shares of publicly traded companies are issued and traded, either through exchanges or over-the-counter markets. In the video, the stock market is central to the story of Ronald James Reed, who despite being a janitor, managed to amass a fortune through astute investments, demonstrating that success in the stock market is not solely dependent on large capital or professional guidance.

💡Investment Strategy

An investment strategy refers to a plan or method for investing money with the goal of achieving a particular financial outcome. Ronald James Reed's investment strategy involved diversification across various industries and a focus on dividend stocks, which allowed him to reinvest and grow his wealth over time, as illustrated in the video.

💡Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to mitigate risk. In the context of the video, Reed's portfolio included around 95 stocks from different sectors, showcasing the importance of diversification in building a robust investment portfolio.

💡Dividend Stocks

Dividend stocks are shares in companies that distribute a portion of their earnings to shareholders in the form of dividends. Ronald James Reed's investment in dividend stocks allowed him to reinvest the dividends, further diversifying his portfolio and contributing to his wealth accumulation, as explained in the video.

💡Minimalism

Minimalism is a lifestyle choice characterized by owning and consuming only what is necessary or valuable. The video highlights Ronald James Reed's minimalist lifestyle, where he chose not to flaunt his wealth but rather lived modestly, focusing on the growth of his investments rather than material possessions.

💡Philanthropy

Philanthropy is the act of promoting the welfare of others, typically through the donation of money to good causes. Ronald James Reed's story includes significant acts of philanthropy, as he donated millions of dollars to his stepchildren, a hospital, and a library, demonstrating his commitment to giving back to society.

💡Wealth

Wealth refers to an abundance of valuable resources or material possessions. The video contrasts the concepts of being 'rich' with being 'wealthy,' using the example of a person who appears rich due to material possessions but is not wealthy due to liabilities, whereas Reed was truly wealthy due to his diversified investments.

💡Financial Discipline

Financial discipline involves managing one's finances responsibly, spending within means, and saving for the future. The video emphasizes the importance of financial discipline in Ronald James Reed's life, as he chose to live modestly and invest his earnings wisely, leading to his financial success.

💡Lifestyle

Lifestyle refers to the interests, opinions, and behavioral patterns of an individual, group, or culture. The video discusses the lifestyle of Ronald James Reed, who despite being a millionaire, chose to live a simple life, focusing on his passion for investing and his desire to contribute to society through philanthropy.

💡Secret Investor

A secret investor is someone who invests in stocks or other assets without publicly disclosing their investments. Ronald James Reed was a secret investor, as he worked as a janitor while quietly building a substantial portfolio that was only discovered after his death, as depicted in the video.

💡Passion

Passion is a strong emotional connection or enthusiasm for a subject or activity. The video suggests that Ronald James Reed's success in the stock market was driven by his passion for investing and understanding finance, rather than a desire for quick wealth or a lavish lifestyle.

Highlights

The story of Ronald James Reed, a janitor who amassed 55 crore rupees ($8 million) through smart investments, challenges the belief that large capital and professional help are needed to succeed in the stock market.

Reed, despite his modest lifestyle and job as a janitor, was a secret millionaire, demonstrating that wealth can be accumulated without flaunting it.

Reed's investment strategy focused on diversification, holding around 95 stocks across various industries, which protected his portfolio from significant losses.

Reed avoided investing in technology companies, choosing instead to invest in sectors he understood well, adhering to the principle of 'invest in what you know.'

Reed's preference for dividend stocks allowed him to reinvest dividends and further diversify his portfolio, contributing to his financial success.

Reed's lifestyle was marked by minimalism and financial discipline, spending money only on essentials and avoiding luxury items.

Despite his wealth, Reed continued working modest jobs and maintained a simple lifestyle, emphasizing that appearances do not necessarily reflect true wealth.

Reed's story illustrates the difference between being rich and being wealthy, with wealth defined by hidden assets rather than visible luxuries.

Reed's financial success was driven by his genuine interest in understanding how money works and mastering the art of investing.

Reed donated significant portions of his wealth to charity, including $4.8 million to the hospital where he had breakfast and $1.2 million to the library where he learned about investing.

The story highlights the importance of giving back to society and using wealth to make a positive impact rather than merely for personal gain.

Reed's disciplined approach to spending and investing serves as a valuable lesson for financial success, showing that consistent, informed investing can lead to substantial wealth over time.

Reed's success story emphasizes that financial literacy and a genuine interest in investing can be more valuable than high income or professional degrees.

The video encourages viewers to focus on becoming genuinely knowledgeable about investing rather than seeking quick and easy money.

The video concludes with a call to action for viewers to like and subscribe for more inspirational case studies, underlining the importance of continuous learning and financial education.

Transcripts

hello everyone welcome to today's video

and this is your friend bharachakur for

a very long time i believe that to make

big money in the stock market you need

two things number one large capital to

invest and number two professional help

and guidance but my belief was

challenged when i read a story of a

sweeper who made 55 crore rupees from

the stock market and it was really

surprising for me to know because i have

seen smart people with fancy degrees

fail in the stock market but on the

other hand i was really surprised to

know a sweeper was able to make 55 crore

rupees from the stock market how is that

even possible trust me this story can be

an inspiration for all those who believe

that making money from stock market is

hard or impossible and most importantly

this story has so many lessons that if

we can learn and implement in our

investment strategy then it is quite

possible that we can also make a fortune

in the stock market so to begin with

what comes to your mind when you see a

sweeper wearing old dirty clothes doing

his exhausting job you might feel sorry

for him or you might even pity him but

what if i told you that sweeper is

wealthier than your entire family

wouldn't that be a shocker for you and

the family of ronald james reed felt the

same shock when he died on june 2nd 2014

because that day his family discovered

that reed was a secret investor with

assets worth 8 million dollars which in

2014 was around 55 crores in indian

rupees so to the entire world and even

to his family ronald james reed was an

ordinary sweeper but in reality he was a

secret millionaire the story might sound

very similar to clark kent's story was

an ordinary journalist for the world but

secretly he was the superman so let's

try to understand how an ordinary

sweeper managed to become a millionaire

in stock market and what was his secret

so let's begin with his story so ronald

james reid was an american

philanthropist investor janitor and a

gas station attendant and in the u.s a

janitor is a fancy word for a

housekeeper who sweeps the building

cleans it and manages the property so

ronald reed comes from a humble farmer's

family and he was the first high school

graduate in his family and reed had to

walk 6.4 kilometers every day to his

school and later reed worked as a

military policeman in world war ii and

when the war was over he returned back

to the u.s where he started working as a

gas station attendant and continued to

work as a gas station attendant for

about 34 years and in 1979 when he was

about 58 years old he retired from the

gas station and took a part-time job as

a janitor at jcpenney where he worked

for next 17 years until 1997. and back

in those days the jcpenney was a

departmental store or a supermarket in

the u.s just like we have big bazaar or

dmart in india so after doing so many

odd jobs for a very long time ronald

reed died peacefully in the year 2014

and on the day of his death all his

family members and friends were sad and

at the same time they were also thinking

at what point reid became a millennial

how he knew where to invest without

failing and if reid was so rich then why

he was doing a odd job of a janitor in a

departmental stores why didn't he buy

fancy cars or a big house and live a

lavish lifestyle which everyone would

have envied so the answer of all these

questions lies in the lifestyle and work

that they call for ronald read so to

begin with ronald reed didn't do

anything extraordinary he just did the

most ordinary things which any investor

can do or follow in his investment

journey so when ronald reed was working

as a gas station attendant he used to go

to a cafeteria which was in the local

memorial hospital where he used to have

coffee and breakfast every single day

and after that he used to go to the gas

station for work but a few years later

that cafeteria was closed so ronald

discovered a new coffee shop where he

started to have his coffee and breakfast

every day and look at the coincidence

the local hospital's development

director where ronald used to have his

breakfast and coffee earlier was also a

regular customer to this new coffee shop

and he asked ronald to pay a visit to

the nearby library whenever he is free

where they can meet and they can spend

time and this one random coincidence

changed ronald reed's life forever how

let me explain ronald went to the

library and became interested in the

library he even bought a library card

and started borrowing piles of books

every week he studied with enthusiasm

through studying these books he

developed a genuine interest in how

money works and most books he read were

about stock market and finance and he

was also found of a particular newspaper

the wall street journal he spent hours

reading books in that library until he

became a wizard at picking the right

stocks and mastered the art of investing

and through this acquired knowledge

ronald made his investment strategy

which was going to make him a

millionaire so what was his investment

strategy let's have a look and try to

understand so when ronald died in 2014

at that time he had around 95 stocks in

his portfolio which shows that ronald

knew the importance of diversification

in investment so what is diversification

diversification is a risk management

strategy that mixes various investments

within our portfolio he diversified his

investment in many stocks across

industries such as healthcare

telecommunication public utilities rail

transport banks and consumer goods and

to many people's surprise ronald even

had stocks of lehman brothers which went

bankrupt in 2008 but this bankruptcy had

minimal effect on his portfolio because

his investment was diversified in many

stocks across various industries and

ronald always invested in sectors which

he knew about and had a deep

understanding of the changes in those

sectors and that's why he never invested

in technology companies because he knew

nothing about technology so he

concentrated mainly on companies he knew

about and this reminds me of a quote

from a famous investor and fund manager

peter lynch who says invest in what you

know and this investment strategy of

ronald saved his investments from the

dot-com bubble in the 1990s and ronald

also invested mainly in a dividend

stocks so that he can reinvest the

dividend money in new stocks and further

diversify his investment portfolio and

no doubt this investment strategy helped

ronald to build a strong investment

portfolio but still the true reason for

his success lies in his lifestyle there

is a book called the psychology of money

and in this book there is a chapter

called wealth is what you don't see

which tells us the difference between

being rich and being wealthy and this

might sound a little bit confusing so

let me help you understand the

difference between these two with a

simple example so there is a friend of

mine for example sake let's call him

tarun who is 26 years old and started

working at the age of 23 and he is

working in a big i.t company and he

earns a very good salary from his job

and recently tarun bought an suv worth

20 lakh rupees and he also bought a

luxury apartment last year worth one

crore rupees and tarun also has a very

good lifestyle where he goes on

international vacations he goes to clubs

and enjoy his life to the fullest so now

tarun is a typical rich guy in our

society but in spite of being a rich guy

tyrone is not wealthy why do i think so

let me explain so taron has an emi for

his apartment which cost him 66 530

rupees per month which he has to pay for

the next 29 years and because of that he

will end up paying around 1.4 crore

rupees only in interest on the one crore

loan for his apartment that means

together tarun has to pay around 2.4

crore rupees in the next 25 years to the

bank and his emi for the car is around

48 000 rupees per month which he will

have to pay for the next five years and

he will pay another 6 lakh rupees as

interest for his car so now the total

value of his asset is around 1.2 crore

which includes 1 crore rupees for the

apartment and 20 lakh rupees for the car

and his liabilities are around 1.46

crore rupees which is the interest he

has to pay towards his home loan and his

car loan and to calculate the network

you subtract the total liabilities from

the total assets and if you do the math

then tharon's net worth is minus 26 lakh

rupees and on top of that i should also

tell you that an apartment and a car is

a depreciating asset because if you buy

a car or an apartment today then what

will be its value after 25 years or

after 30 years or after 50 years so if

the value of a particular asset you own

increases with time then it's an

appreciating asset for example land is

an appreciating asset a fundamentally

strong value stock can be an

appreciating asset because if you take

asian paints for example asian paint

stock has appreciated in value

consistently every year from the past 20

years and if the value of an asset

decreases with time then it's a

depreciating asset for example you buy a

brand new car the moment you drive with

that car out of the showroom the value

of the car will drop by 30

and the more you use the car and the

older the car gets its value reduces and

depreciates accordingly and also if you

consider an apartment where you only own

the apartment not the land then in that

case the older the building gets the

more it depreciates because the

construction quality will become weaker

with every passing year so now coming

back to tarun he might look rich to the

society but in reality he is a drowning

indent and that's why tarun is a rich

guy but not a wealthy guy remember when

i said wealth is what you don't see and

when it comes to ronald read it is very

true because his neighbors friends and

even family didn't know that ronald made

so much of money and he is a actual

millennial he lived a very simple and

normal lifestyle he never had a luxury

car or an expensive house but ronald was

a wealthy guy because he had assets in

the form of stocks which were hidden and

secretly made him a millionaire so now

the question arises what are the lessons

we can learn from ronald james reed not

just to become a successful investor but

also in general to become financially

successful so the first lesson what we

can learn from ronald is minimalism so

minimalism is all about owning only what

adds value and meaning to your life

because if you see ronald only spent

money on things which were important

ronald was a janitor so it was not

necessary for him to wear fancy clothes

or drive a luxury car ronald was

financially disciplined he only spent on

things which were needed and ronald

focused on actually becoming richer

rather than just look rich and most

importantly ronald didn't wanted people

to remember him for his rich lifestyle

or for him being a millennial but rather

he wanted people to remember him for all

the charity he could do from this money

rather than just blindly spending it and

trying to look rich and impressing

people he didn't like and that brings us

to lesson number two which we can learn

from ronald which is giving back to the

society so when ronald died he gave two

million dollars to his step children he

donated 4.8 million dollars to the

memorial hospital where he used to have

his breakfast and he donated 1.2 million

dollars to the brooks memorial library

where he learned how to make investments

which helped him become a millennial and

in this way ronald james reid a janitor

a sweeper who was a secret millennia

rather than wasting his money on fancy

cars and luxury homes had a kind heart

to give it back to the society and i

personally think that was his secret to

become so successful in the stock market

because a stock market takes from those

people who come to stock market to make

quick and easy money and stock market

gives back to them who are genuinely

interested in understanding stock market

finance and investing because ultimately

it's the passion that drives success in

any field and in case of ronald reed he

was never interested to make quick money

which he could spend showing off a rich

guy's lifestyle but instead ronald was

humble he invested in stock market not

to make quick or easy money but instead

he invested in stock market because he

was genuinely interested in investment

and finance and he went to library and

genuinely studied about it and for

ronald it was not the money but the game

of stock market that interested him and

that is the reason i personally feel

ronald reed was so successful at stock

market and i hope this inspiring story

of ronald read has taught you that to

become successful in stock market you

don't need a very high income or a

professional degree to make a fortune

and if you like today's case study then

please do press the like button which

will make the youtube algorithm happy

and help this video reach as many people

as possible and also to watch more such

case studies please do subscribe to our

channel and press the bell icon to get a

notification as soon as we upload a new

video so that's it for today guys i will

see you in the next video until then

this is bharachankar signing off