How Astonishing

Ronald Read was a janitor and a gas station attendant who lived a modest life in Vermont. He was known for his frugality, his love of reading, and his generosity to his family and friends. For 25 years, Read diligently serviced cars at a local gas station and also spent 17 years meticulously sweeping floors at JCPenney. At the age of 38, he managed to purchase a modest two-bedroom house for just $12,000, which became his lifelong residence. Sadly, he became a widower at the age of 50 and remained single thereafter. A close friend remembered that his primary pastime involved the chopping of firewood.

In 2014, at the age of 92, Read passed away. It was at this moment that the unassuming rural janitor garnered international attention. He had amassed a fortune of over $8 million. How did he do it?

He made his fortune by diligently buying and holding blue-chip stocks, even during market crashes. He maintained his wealth in secret, even from his family and friends. At the end of his life, most of his wealth was donated to local charities, libraries, and hospitals. He exemplified how patience, discipline, and astute choices can lead to financial success.

Early Life and Career

Ronald James Read’s early life was marked by hardships. Raised in a small house in Dummerston, Vermont, he had to walk or hitchhike four miles to Brattleboro for high school. His determination and hard work paid off, and he became the first high school graduate in his family in 1940. During World War II, Read enlisted in the United States Army, serving as a military policeman in Italy and achieving the rank of technician fifth grade. After an honorable discharge in 1945, he returned to Brattleboro.

For almost 25 years, Read worked as an attendant and mechanic at Haviland’s Service Station, a gas station he later co-owned with his brother. Even in retirement, Read’s work ethic remained strong when he took on a part-time janitorial job at J. C. Penney, dedicating 17 more years of his life.

Personal Life

It was at Haviland’s Service Station that Read met his future wife, Barbara March. After marrying in 1960, Read became a stepfather to March’s two children, including her son, Phillip Brown. Read provided not only a loving home but also supported his stepchildren’s college education. Tragically, his wife, Barbara, succumbed to cancer in 1970, and Read chose not to remarry.

Read found joy in simple pleasures such as wood chopping, stamp collecting, and coin collecting. Despite his wealth, he continued to lead a frugal life, driving a used 2007 Toyota Yaris and wearing frayed clothing that he patched with a safety pin. He was a regular at Friendly’s restaurant, where his unassuming appearance once led a fellow patron to pay for his meal, assuming he couldn’t afford it.

Investing and Frugality

Read’s financial journey is a testament to his remarkable investing acumen. Often referred to as “a blue-collar guy with blue-chip smarts,” Read made prudent investments in dividend-producing stocks. He focused on companies he understood, steering clear of technology companies and stocks he deemed unfamiliar. Some of his prominent holdings included shares in The J.M. Smucker Company, CVS Health, Johnson & Johnson, Procter & Gamble, JPMorgan Chase, General Electric, and Dow Chemical Company.

Read’s investment philosophy was based on patience and a long-term perspective. He regularly reinvested dividends, which allowed his wealth to grow over time. Diversifying his portfolio across various industries, such as healthcare, telecommunications, public utilities, rail transport, banks, and consumer goods, he avoided being overly exposed to a single sector. Even the bankruptcy of Lehman Brothers in 2008, in which he held shares, had minimal impact on his returns due to his diversified investments.

Despite accumulating substantial wealth, Read’s frugality never wavered. He stored his stock certificates in a safe deposit box and read The Wall Street Journal, all while preserving the modest lifestyle he had always known.

Death and Legacy

As Ronald Read’s health declined, he received care from Brattleboro Memorial Hospital, where he later passed away on June 2, 2014, at the age of 92. His funeral was conducted with military honors, and he was laid to rest at Meeting House Hill Cemetery.

Ronald Read’s true wealth was not just financial; it was the generosity he showed even in his passing. His estate, which was nearly $8 million, was bequeathed to various causes close to his heart. He left $2 million to his stepchildren, caregivers, and friends. Brattleboro Memorial Hospital received $4.8 million, while Brooks Memorial Library was the recipient of $1.2 million, at a time when libraries were grappling with budget constraints.

In addition to these significant donations, Read also gave a historic phonograph and a collection of drums to the Dummerston Historical Society. His remarkable act of philanthropy and his story were widely covered in newspapers and magazines, serving as an inspiration to people from all walks of life.

Just as Astonishing

In the dynamic world of stock trading, where fortunes swing like a pendulum, there’s a unique online community that’s caught the attention of traders worldwide. Meet Aaron, a 29-year-old software engineer from Munich, who found himself drawn into this virtual world. What began as a fun hobby soon turned into a gripping obsession.

For those unfamiliar with it, the WallStreetBets subreddit is a place of thrilling discussions, where quirky avatars and a and a distinctive language that includes terms like “tendies” for stock market gains. Aaron felt the pull of this virtual community, enticed by its charismatic and light-hearted atmosphere. He describes it as not too serious, just plain fun, a place where humor thrives, and he thought, “I want to be part of this.”

However, what began as a lighthearted diversion quickly transformed into an all-consuming fixation. Aaron wasn’t alone on this journey; countless others were lured into daring trades by the ceaseless conversations on the WallStreetBets forum. He explains it is an addiction because of the constant chatter, pushing him to invest more than he could comfortably afford out of the fear of missing out on potentially profitable opportunities.

Too Late

As discussions on the subreddit revolved around specific stocks, Aaron felt the urge to participate. He began taking out loans to fuel his trading endeavors, accumulating a substantial debt of 71,000 euros (around $76,672) between December 2020 and September 2021. His most significant single loan reached $21,488. His focus? Meme stocks, those with beaten down values but driven by social media hype.

Despite an initial gain of $4,000, Aaron’s finances took a nosedive. He began making riskier bets, including trading options that allow leveraging investments. These risky moves led to increasing debt and dwindling savings.

When the weight of his losses from loans became overwhelming, Aaron made a fateful decision. He convinced his girlfriend to let him invest her money in August of the previous year. She initially suggested investing just 100 euros into a brokerage account, but he managed to persuade her to commit $10,000, downplaying the level of risk involved.

Within two months of gaining access to her funds, Aaron lost $6,000 on meme stock bets. The revelation of this loss came as a shock to his girlfriend, who discovered it while checking her brokerage account before Aaron could confess. He describes the feeling as one of shame, comparing his actions to a casino gamble with similarly dismal results.

Aftermath

As a result of his mounting debts and continuous repayments, Aaron’s financial life has been thrown into disarray. He can now only afford to go out when his girlfriend covers the expenses. His dreams of proposing to her have been put on hold due to the financial burden he’s created for himself. With estimated debt repayments ranging from $50,000 to $60,000, Aaron anticipates his financial woes continuing until at least 2028.

The allure of quick riches and the excitement of trading have led many individuals, like Aaron, to face insolvency. Although he acknowledges the risks and the harm trading has brought into his life, Aaron can’t rule out a return to the Reddit-fueled world of WSB. He confesses, “I will check out the subreddit, and I will probably gamble my money again,” he said. He doesn’t know how much, “but I will definitely do it because it’s fun.”

Repeat

You heard that last sentence correctly. The stark contrast between Ronald and Aaron is striking, as if they were created to contradict. Aaron’s story is not unique; there are individuals who, like him, aspire to quick wealth but ended up in calamity. Reading stories like this serves as a daily reminder of the importance of being reasonable and rational.

There is only one Ronald for a million Aarons.

We find it interesting that the people who wouldn’t mind working 8 hours a day for the next 50 years doing a job they despise, are the same people who would mind they can’t get a Ferrari from trading options in a month.

Testimony

The story of Ronald James Read is a remarkable testament to the virtues of frugality, wise investing, and the power of generosity. His life and legacy serve as a shining example of how anyone, regardless of their background or profession, can achieve financial success through prudent financial planning and discipline. Ronald Read’s story continues to inspire individuals to pursue their financial dreams and make a positive impact on the world.

The story of Aaron and numerous other individuals, particularly young people, serves as a testament to the consequences of greed and impatience. Larry Burkett, a radio personality, phrased it perfectly:

“Get-rich-quick thinking leads to three basic errors: (1) Getting involved with things you cannot understand; (2) Risking funds you cannot afford to lose, that is, borrowed funds; and (3) Making hasty decisions. Each of these actions violates one or more biblical principles… Together they constitute a sin called greed.”