A Janitor Kept His $8,000,000 a Secret His Whole Life

Summary

Ronald Reads, a janitor, quietly amassed a fortune of 8 million dollars through wise investments, despite living a modest life. Born in 1921, he worked at a gas station and later as a janitor, all while studying the stock market in his spare time. His frugal lifestyle and strategic investments in blue-chip companies and dividend-paying stocks led to his wealth. He remained humble, with no one suspecting his riches until he generously donated millions to his stepchildren, friends, the Brattleboro Memorial Hospital, and the library that fueled his investment knowledge.

Takeaways

• 💼 Ronald Reads was a janitor who became a millionaire through wise investments.
• 🚶‍♂️ He walked 4 miles daily to high school and was the first in his family to graduate.
• 🎖️ After serving in the army, he worked at a gas station for 34 years.
• 🧹 Post-retirement, he continued working as a janitor for 17 years.
• 📈 Ronald was a quiet investor, studying the stock market and making smart choices.
• 🏡 He lived a modest life, driving a second-hand car and wearing a worn-out coat.
• 💰 He invested in blue-chip companies and reinvested dividends to grow his wealth.
• 👨‍👧‍👦 He was generous, helping his stepchildren through college and supporting his community.
• 🏥 He donated millions to the hospital and library that were important to him.
• 📚 His wealth was built on a foundation of knowledge gained from reading The Wall Street Journal and library books.
• 🌱 Ronald's story is an inspiration of frugality, hard work, and the power of compound interest.

Q & A

What was the first significant educational achievement of Ronald Reads?

Ronald became the first person in his family to receive a high-school diploma in 1940.

How did Ronald Reads spend his time after returning to Brattleboro in 1945?

After returning to Brattleboro, Ronald worked as a gas station attendant at Haviland's Service Station for 34 years.

What was Ronald's secret that nobody in his town knew about?

Ronald was a quiet investor who managed to amass a fortune through wise stock market investments.

How did Ronald's lifestyle reflect his financial status?

Ronald lived a modest lifestyle, dressing plainly and driving a second-hand Toyota Yaris, which made his wealth unsuspected to those around him.

What was Ronald's approach to investing in the stock market?

Ronald studied the stock market and investments from books and The Wall Street Journal at the library. He invested in multiple companies to diversify his portfolio and minimize risk.

How did Ronald's frugality manifest in his daily life?

Ronald preferred to park far away from his destination and walk to avoid paying for parking, and he wore an old winter coat held together with safety pins.

What was the significance of the local Memorial Hospital to Ronald?

The Memorial Hospital was significant to Ronald as he used to have his daily breakfast at its cafeteria and later donated $4.8 million to it.

What was Ronald's routine at the local library?

Ronald would borrow piles of books every week and spend hours studying about the stock market and investments.

How did Ronald's investments grow over time?

Ronald's investments grew by holding onto several blue-chip companies for a long time and investing in companies that paid substantial dividends, which he would then use to buy more stocks.

What was the total amount of money Ronald donated upon his passing?

Ronald donated a total of $8 million, with $4.8 million to the Brattleboro Memorial Hospital, $1.2 million to the library, and approximately $2 million to his stepchildren and friends.

What was Ronald's attitude towards public recognition?

Ronald had mixed feelings about public recognition. He once expressed a desire to have his name on a building but then quickly dismissed the idea.

Outlines

00:00

💼 The Unlikely Millionaire

This paragraph introduces the story of Ronald Reads, a janitor who became a millionaire through his own intelligence and investments. Despite common assumptions about how people with less money dream of luxury, Ronald's contentment with his modest life and his quiet investment strategy led to his wealth. The paragraph also highlights his humble lifestyle, his work ethic, and his frugal nature. Ronald's story is one of unexpected success and the value of a modest and hardworking life.

05:02

📈 The Secret Investor

This paragraph delves into how Ronald became a secret millionaire. He was a meticulous investor, starting small and growing his wealth by investing in blue-chip companies and those that paid substantial dividends. Ronald's strategy involved diversifying his investments across multiple companies and industries to minimize risk. His lack of tech-savviness did not hinder his success; instead, he relied on his research from library books. The paragraph also discusses his philanthropic gestures, such as donating to the hospital and library that were significant in his life, and his desire to remain humble despite his wealth.

Keywords

💡Multi-millionaire

A multi-millionaire is an individual with a net worth of several million dollars or more. In the video's context, it sets the stage for discussing how different people might handle sudden wealth. The janitor's story, who became a multi-millionaire through intelligence and investments, contrasts with common stereotypes of what one does with newfound wealth.

💡Intelligence and Investments

Intelligence in this context refers to the capacity to make informed decisions, while investments denote the act of allocating resources, such as money, with the expectation of financial returns. The video highlights how the janitor's smart investment strategies led to his wealth accumulation, showcasing the power of financial literacy and prudent investment choices.

💡Contentment

Contentment is a state of being satisfied with what one has, without the need for excessive material possessions or wealth. The video uses this concept to contrast the janitor's modest lifestyle with the perceived need for luxury among the wealthy, emphasizing that happiness is not solely dependent on material wealth.

💡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 janitor's study of the stock market from The Wall Street Journal and library books is pivotal to his success, illustrating the importance of education and research in investment decisions.

💡Blue-chip Companies

Blue-chip companies are large, nationally recognized, financially stable, and well-established firms with a history of reliable performance. The video mentions that the janitor held onto several blue-chip companies, which contributed to his wealth, underscoring the strategy of investing in reputable and stable businesses for long-term growth.

💡Dividends

Dividends are portions of a company's profits paid out to shareholders, usually on a quarterly basis. The video explains that the janitor invested in companies that paid substantial dividends, which he then used to purchase more stocks, highlighting a strategy of reinvesting returns to grow wealth over time.

💡Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, or categories to mitigate risk. The janitor's portfolio included stocks from different industries, which is an example of diversification, demonstrating a prudent approach to investing to reduce potential losses.

💡Frugal

Being frugal means being economical with one's resources and avoiding wasteful spending. The video describes the janitor as a frugal person, preferring to walk for free rather than pay for parking, which reflects his lifestyle choices and contributes to his ability to accumulate wealth over time.

💡Philanthropy

Philanthropy is the act of donating money or resources to support causes, organizations, or individuals in need. The video concludes with the janitor's significant donations to the hospital and library, reflecting his desire to give back to the community and support institutions that had been part of his life.

💡Legacy

Legacy refers to the lasting impact or remembrance left by an individual's life and actions. The video touches on the janitor's wish to be recognized for his work and deeds, not just his wealth, which is a reflection of his legacy. His donations and the impact on his community will be part of his enduring legacy.

💡Humility

Humility is the quality of being modest and not overly proud or concerned with one's own importance. The janitor's humility is evident in his everyday actions and interactions with others, as he did not flaunt his wealth and maintained a down-to-earth demeanor, which is a central theme in the video's narrative of his life.

Highlights

A janitor became a multi-millionaire through intelligence and investments.

He achieved a net worth of 8 million dollars by the age of 92.

Ronald Reads was born in 1921 and grew up on a farm in Vermont.

He was the first in his family to graduate high school.

Ronald served in the army for 5 years before returning to Brattleboro.

He worked at a gas station for 34 years before retiring.

After retirement, he took a part-time job as a janitor at a department store.

Ronald was a quiet worker and a secret investor.

He led a modest lifestyle, driving a second-hand Toyota Yaris.

He was married and helped his stepchildren through college.

Ronald was known for his frugality, preferring to walk to save on parking.

He had a daily routine of having coffee and an English muffin at the hospital cafeteria.

Ronald was an avid reader of The Wall Street Journal.

He invested in the stock market, starting small and growing his wealth.

He diversified his investments across different industries.

Ronald's family was unaware of his wealth until he hired a lawyer for his estate.

He donated millions to the hospital, library, and his stepchildren.

Ronald wished to remain humble but be recognized for his contributions.

He gave back to the community and focused on practical applications of his wealth.

Transcripts

Imagine you woke up one day to find out that you’re a multi-millionaire.

What’s the first thing you’d do?

Maybe buy your dream house?

Or a superfast car?

Oh, I know…possibly a yacht?

But you see, not everyone has the same impulses.

One janitor managed to prove everyone wrong with his intelligence and investments.

By the time he was 92 years old, he was worth 8 million, and he’d achieved it all by himself.

His story, however, is rather unusual.

We usually think that people with less money dream of the luxurious lifestyle that we see

on social media.

The big house, the massive pools, the multiple garages filled with race cars, and the endless

vacations.

But some people are satisfied with what they have, and manage to go through life with contentment.

Before I continue, I got a question for you.

If you were a millionaire, what would you do with the money you have?

Would you donate any?

Let me know down in the comments.

Now, back to the story.

Ronald Reads was born on October 23rd, 1921.

He grew up with his family in a tiny house in Vermont, where they ran a farm.

As a kid, Ronald loved school.

He used to walk approximately 4 miles every day to his high school in Brattleboro.

He made that same journey every day of the week until he graduated.

In fact, in 1940, he became the first person in his family to receive a high-school diploma,

which was huge back in the day.

After that, he joined the army for 5 years, but by 1945 he was back in Brattleboro, ready

to continue his life.

Upon his return to his home town, he got right to work as a gas station attendant at Haviland's

Service Station.

He worked at the same gas station for the next 34 years.

Around 1979, when he was about 58 years old, it was time to retire.

But he didn’t have it in him.

He was too eager to keep working and stay busy.

You know what they say, “Another day, another Dollar”.

So, when his time as a gas station attendant was over, he got a part-time job as a janitor

at the local department store.

There, he worked another 17 years.

But, you see, our friend Ronald had a secret.

Not only was he a quiet worker, he was a quiet investor.

So, at what point did Ronald became a secret millionaire?

How did he know where to invest without failing?

I’ll get into that in a gif.

First, let’s look into his life-style and work ethic.

Let’s face it folks, figuring out how to invest in the stock market requires a LOT

of research.

Ronald was a private guy.

He used to love chopping wood and driving his second-hand Toyota Yaris around town.

He also loved collecting stamps and coins.

He’s what you’d describe as a very modest individual.

In fact, most people who were interviewed from his town said that Mr. Read didn’t

strike anyone as a guy with a ton of money.

All the local residents were shocked when they found out his worth.

His lawyer, however, had some insight into his situation.

The reason why nobody believed this man was rich was because of the way he dressed and

handled money.

When Ronald approached his lawyer later on in his life, she assumed that he didn’t

have much money.

He was wearing a somewhat worn-out coat, a regular flannel shirt, and an old baseball

hat.

He was married to the love of his life, whom he’d met while working at the gas station.

Her and her two children moved in to a house Ronald bought for $12,000 dollars.

They never had any children of their own, but Ronald loved his step children as if they

were his own.

He helped them get through college and paid for their education, since it was something

he believed in strongly.

Ronald also had a great relationship with the people he worked with.

Because of his appearance, some of his colleagues assumed that he needed financial help.

However, when they tried to offer it to him, he politely declined.

Ronald was simply a frugal sort of person.

Even at an older age, around 90, he preferred to park far away from his destination and

walk, rather than pay for parking.

But three things earned him a lot of respect: He was easy to work with, he was down-to-earth,

and most importantly, he had a great sense of humor.

One of the things he loved doing on a daily basis was to visit the cafeteria of the local

Memorial Hospital.

He’d go in every single morning and order a cup of coffee and an English muffin with

peanut butter.

He’d always sit in the same spot, drink his coffee, pay for the meal, and then head

back to the road.

He wore an old winter coat that was held together with safety pins so that it could stay closed.

Unfortunately, the Hospital Cafeteria was shut down a few years later and Ronald sought

out a new coffee stop.

That’s when he discovered Friendly’s, and started having his breakfast there.

Coincidentally, the local hospital’s development director was a regular customer at that diner,

and he advised Ronald to pay a visit to the nearby Library.

When Ronald heard about it, his eyes sparkled.

He got his library card and started borrowing piles of books every week, studying them with

enthusiasm.

In fact, he fell in love with a very particular newspaper: The Wall Street Journal.

Ronald loved going to the library, so he’d always drive there, or ask one of his step-children

to take him.

He’d spend hours and hours studying about the stock market and investments, until he

was able to tell which companies were worth putting his money into.

But here’s how he secretly made his fortune.

He was a true wizard at picking stocks and studying the stock market.

He started small, until his safe deposit box was becoming an ever-growing mass of stock

certificates.

He divided his money into categories, and then he’d invest less money in multiple

companies, rather than more money in less companies.

This kept his money safe; if something went wrong, it wouldn’t be too devastating because

the amount he’d lose would be insignificant.

He began his investments a few years after he started working as a gas station assistant,

and he held on to several blue-chip companies for quite a while.

That’s what helped his money multiply.

He also invested in companies that paid substantial dividends, or bonuses, in layman’s terms.

Therefore, he could use that money to buy more stocks.

Ronald wasn’t a tech-savvy kind of guy.

So, his focusc remained on companies he read about in the library books he used to borrow.

When he passed away, he had more than 95 stocks spread around different industries, such as:

telecommunications, healthcare, consumer goods, railway transport and public utilities.

Nobody in his family knew how much money he had, or how much he was worth.

They assumed that the money he was making as a janitor was barely enough for him to

get by.

As he grew older, his health began to deteriorate, and he was hospitalized at the same hospital

where he used to have his daily breakfast.

That was when he hired the lawyer to help him with his estate.

He gave approximately $2 million dollars to his two stepchildren and some friends.

He donated $4.8 million dollars to the Brattleboro Memorial Hospital, and he also donated $1.2

million dollars to the library he used to study at.

Roland wanted to remain in the shadows, but at the same time he wished to be known for

his work and deeds.

Once, he had a conversation with a buddy of his, and he told him “Wouldn’t it be nice

If I had my name up on a building?” but right after, he’d regretted it and said

“no,no,no” and shook his head.

One of the most important things he did was give back to the community and people he’d

spent his life with.

The hospital, where he had his breakfast.

The library, where his studied about the stock market, and his family, who he loved.

Bottom Line: Ronald was a rich man, in more ways than just money.

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