I’d like to conclude our video series that discusses superpowers that all investors can possess.
And the next one is Consistency: Sticking with something is one of the most difficult things to do. This is true regarding any pursuit, whether it’s losing weight, developing a new skill, career success, relationships, and so forth. I am reminded of an interview I recently heard with legendary soccer player, Cristiano Ronaldo, who said that his routine to be one of the best players in the world is not hard to understand. Everyone can theoretically do it. However, very few people have the discipline to stick with it day in and day out to become a world class player. It’s the consistency that is difficult.
Consistency is the secret ingredient that can bring greatness in all areas of life. This is especially true when it comes to investing, where there are so many distractions. There are always going to be better performing, more exciting, and more exclusive investments. Yet, the people that are the most successful in building wealth are the ones who can stick with a strategy for the long haul and ignore all the noise around them.
One prominent example of someone who utilized these three superpowers I mentioned in this video series was Ronald James Read. The reason you may not have heard of him is because Read was not a public figure. He was a janitor in Brattleboro, Vermont.
Read grew up in an impoverished farming household. He was the first high school graduate in his family. He enlisted in the United States Army during World War II and upon an honorable discharge from the military in 1945, he returned to Brattleboro, where he worked as a gas station attendant and mechanic for about 25 years. Read retired for one year and then took a part-time job as a janitor at J. C. Penney for the next 17 years until 1997.
In 2014, when Read died, he received media coverage from outlets around the country after bequeathing $1.2 million to Brooks Memorial Library and $4.8 million to Brattleboro Memorial Hospital. In total, Read amassed a fortune of almost $8 million by investing in dividend-producing stocks, avoiding the stocks of companies he did not understand, living modestly, and being a buy and hold investor with a diversified portfolio of stocks. He also had the benefit of a long-time horizon, passing away at 93 years old.
The cynics watching this may be thinking “Mr. Read didn’t have yeshiva tuition to pay or the need to purchase kosher food.” That’s true. However, Mr. Read also didn’t have the same earnings potential, yiddishe kop, and strong social ties that come with being part of a frum community. What Read did possess are the aforementioned three investing superpowers. He lived within his means and saved/invested a lot of his money every year. He invested for decades, which allowed the power of compounding to work its magic. He also stayed consistent with his process of buying companies he understood and that were financially stable. Over the course of his investment career, there is no doubt that more “exciting” investment opportunities presented. After all, he did live through multiple stock market bubbles. Yet, he stayed consistent and disciplined for all those years and didn’t pursue higher returns or more exotic opportunities.
As viewers of this video series take stock of their own personal finances, it’s worth being introspective. If a janitor from Brattleboro, Vermont can amass a fortune and become a noted philanthropist, then what’s stopping you from harnessing these three superpowers and doing the same?