The Buy and Hold Strategy

For those of you who have read my book, you may recall the story of Grace Groner, a woman who made a single purchase of company stock which she held on to and never sold.  That single stock purchase over time made Grace a millionaire.

theodore-johnsonJust think, what if you bought many shares of company stock over a long period of time once again never selling?  Well, you might turn out like Theodore R. Johnson.

Mr. Johnson was a hard worker rising from a delivery man to a role as Vice President with UPS.  He was also very judicious in purchasing  company stock over the years.  At the time of his retirement in 1952, his annual salary had risen to $14,000 and the value of his stock had risen to $700,000.  This was quite a sum based on the value of the dollar at that time.  However, instead of splurging on something extravagant, Mr. Johnson held on to that stock never selling and reinvesting the profits.

At the time of his passing in the 1990s Mr. Johnson’s beneficiaries were shocked to learn that they would all be sharing in his $70 million fortune!  It appears that Mr. Johnson’s investment strategy was to buy and hold… for a lifetime.

4 thoughts on “The Buy and Hold Strategy

  1. chiefmomofficer November 22, 2016 / 2:25 am

    I remember hearing about Theodore before on a podcacst-he’s a great example of what buying and holding an investment over a long period of time can get you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s