Petrol Pump Worker Earns 55 Crores from STOCK MARKET | Great Investing Story | Business Case Study
Summary
TLDRIn 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
- đ 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.
- đ€Ż Ronald's story is inspirational, demonstrating that smart people with fancy degrees can fail in the stock market while ordinary people can succeed.
- đ¶ââïž Ronald came from a humble background, was the first high school graduate in his family, and worked as a gas station attendant and janitor.
- đ 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.
- đĄ Ronald diversified his investments across various industries, such as healthcare, telecommunication, and banks, which helped him manage risk.
- đ He mainly invested in dividend stocks, reinvesting the dividends to further diversify his portfolio, avoiding technology companies he didnât understand.
- đ§ Ronaldâs success was attributed to his minimalist lifestyle, focusing on financial discipline and spending only on necessary things.
- đ° He believed in becoming truly wealthy rather than just appearing rich, avoiding fancy cars and luxury homes.
- đ€ 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.
- đŻ 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
đ 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.
đ 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.
đ 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.
đ 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.
đ 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.
đ§ 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.
Mindmap
Keywords
đĄStock Market
đĄInvestment Strategy
đĄDiversification
đĄDividend Stocks
đĄMinimalism
đĄPhilanthropy
đĄWealth
đĄFinancial Discipline
đĄLifestyle
đĄSecret Investor
đĄPassion
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
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see you in the next video until then
this is bharachankar signing off
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