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.
Just 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.