“you only got one shot
do not miss your chance to blow…”
Someone asked me this weekend, with all the volatility and risk that comes with investing in stocks, what is the one completely unassailable reason why it makes sense to put my money in a stock. My answer? You will never strike it big earning a paycheck. But with stocks, you might. And might is better than never.
I want to elaborate on that further, by highlighting a true story. Grace Groner was a secretary for one pharm company, Abbot Laboratories, all her life. She made enough to have an okay life, lived in the same house over 40 years, and died at 100. In her will, she left her alma mater $7million. How did a secretary leave that small fortune behind? Not by saving and being frugal and all, although that helps. All she did was buy 3 shares of special issues of her own employer, Abbot in 1935. She held onto those, just those three, and never put money in the stock market again.Total invested money? $180 or about $3000 in 2014 dollars.
Those three shares compounded, split and had their dividends reinvested until by the time she died, she had 100,000 shares worth seven million dollars. One single investment.
Now will every investment pay out like that? No. People afterall did invest in Enron. But if you make just a few right decisions early enough in life, you can reap rewards. So forget the thought that you have to be already rich to invest. Or whatever other hang ups you have.
Just invest in your knowledge, and then, just invest.
Then let time and compounding do it’s thing.
Read more about Grace Groner here.
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