What Ron knew

.
  By Guest Blogger Sinan Terzioglu
.

When Ronald Read passed away in 2014 at 92 he left most of his $8 million estate to his local library and hospital.  His wealth was unknown to everyone around him including his family.  All were shocked because he didn’t get a head start in life and was the first in his family to graduate from high school. He served in the military during World War II and after returning home worked at a gas station, then as a department store janitor.  He never had high income nor married into wealth, but throughout his entire life he saved and consistently invested in a diversified basket of high quality securities.

Consistent Savings

Read’s investment success shows you don’t need big income to accumulate a 7-figure portfolio.  Accumulating wealth is a function of your savings rate, long term investment plan and holding period.  Saving $1,000 per month and earning an average of 7% per year will grow a portfolio to $1 million in 28 years.  Saving $2,000 per month will get you to $1 million in 20 years.

The amount one saves is not as critical as the consistency of savings, whether it be 10% or 15%+.  For the last number of years many Canadians have not been saving at all and their average lifestyle expenditures are growing faster than incomes.  Even worse, many are borrowing to maintain lifestyles and as a result total consumer debt now exceeds over $2 trillion – larger than our annual GDP.  Reducing some recurring expenses and investing the savings consistently over the long term can be life altering.  For example, imagine you were born in 1962 and retiring today.  If you’d saved $10 per day from the age of 18 and invested in the S&P 500 index the savings would exceed $2 million today.

Don’t Obsess Over Short-Term Performance

Ronald Read was an investor for over six decades.  He experienced all sorts of market cycles yet throughout them was never distracted when the headlines were grim. Over time he continually dollar cost averaged into his basket of securities and he didn’t let the last traded value of his portfolio be his only feedback mechanism.  He never let short-term volatility change his thinking and approach.  He managed his emotions and never lost sight of the long term goal.

From 1926 to 2019, the S&P 500 index generated an annualized total return of approximately 10% per year.  If you had an investment that generated a guaranteed return of 10% per year during that time period you would have underperformed the index in 55 of the 94 years so about 58% of time yet you have ended on par with the index.  Most would very happily accept a guaranteed 10% return per year with no volatility but clearly that is impossible. Even in a fairy tale scenario like that you would have felt like you were missing out over 50% of the years.  In order to achieve the long term rates of return in the investment world you need to accept volatility.  There is no way around it, so keep the big picture in mind rather than obsessing over short-term performance.

Endurance

Read built a portfolio that stood the test of time.  He was widely diversified and held securities in various sectors.  He didn’t chase the latest fad and he didn’t use leverage.  He only invested in securities he thought he would hold forever.  If Read were alive and investing over the last few years I’m confident he would not have bought any of the meme stocks like GameStop and AMC nor would he have chased high flying high growth stocks trading at absurd valuations.  He very likely would not have touched crypto currencies either.

He was patient and humble.  He took comfort in buying securities of strong corporations that paid steady and rising dividends.  Even when the share prices of his investments fluctuated widely he knew that operationally the fundamentals of his investments were strong.  He understood he owned pieces of productive corporations and not just pieces of paper with a ticker symbol.

Slow and Steady Wins the Race

Losing money when investing is inevitable.  No one has a perfect batting average but often times the biggest mistakes are behavioural.  Over the last few months many high flying COVID winners have lost significant amounts from their highs.  Investors that thought valuations were justified are now learning a very difficult lesson.  Enthusiastic investors of the video conferencing company Zoom are now down 80%.  Peloton is off 85% from its peak.  The list goes on and on.

Paying higher than average valuations for premium growth may be justified but it’s important to understand the risks.  For example, imagine you are offered an opportunity to buy security A which you believe will grow at 10% per year or choice B which is a basket of securities expected to appreciate 5% per year.  You decide to purchase security A but unfortunately you paid too high a valuation and after purchasing the stock it losses 50% of its value in the first year.  Even if security A then goes on to generate 10% return per year from that point forward it will take over 15 years to catch up with the basket of securities that would have been growing at 5% a year.

How Would Ronald Read Invest Today?

  He’d be paying attention to the war in Ukraine and high inflation but wouldn’t let the headlines in the media distract him from his long term investment plan.  He wouldn’t worry about the things he couldn’t control but more importantly would focus on what he could, such as his savings rate and asset allocation.

Read invested through the Vietnam war, the Cuban missile crisis and the Iraq war as well as some of the most difficult market environments in history, like the 1970’s when inflation steadily rose and stayed in the double digits for over half the decade.  He endured many recessions and shocks such as the market crash in 1987, the Asian currency crisis in the late 90’s, the September 11, 2001 terrorist attacks and the 2008-2009 financial crisis.  Throughout all of these difficult periods Read remained invested and continued to add to his investments when he could because he had confidence in the fortress-like portfolio he built for himself.  I am confident if Ronald Read were still alive today he wouldn’t change anything about his long term investment plan so if you are invested in a balanced and diversified way neither should you.

Sinan Terzioglu, CFA, CIM, is a financial advisor with Turner Investments, Private Client Group, Raymond James Ltd.  He served as vice-president of RBC Capital markets in New York City and VP with Credit Suisse in Toronto.

 

123 comments ↓

#1 Philco on 03.15.22 at 3:28 pm

Don’t Obsess Over Short-Term Performance
————————–
Sinan same with housing. Its just a number. “Your not richer than you think”
When ya hit 10 Mil you can jump and click you heals.

#2 Property Accountant on 03.15.22 at 3:29 pm

Good article, but try to tell that today to twenty somethings and even thrtity somethings living in the basement, in light of sky high RE prices , work-from-home and YOLO attitudes.

I want it ALL and I want it NOW.

After all, Ronald Read could have enjoyed the life a bit more for that 8 M before he kicked the bucket.
No doubt about that.

#3 Timmy on 03.15.22 at 3:38 pm

Very well written. I came to understand most of this in my early 50’s better late than never….Can you take over from Garth?

#4 Philco on 03.15.22 at 3:41 pm

Good for Elon. Im IMPRESSED. Hes got more balls than our clowns. NO?
https://www.bloomberg.com/news/articles/2022-03-14/elon-musk-challenges-vladimir-putin-to-single-combat-for-ukraine?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS

#5 Philco on 03.15.22 at 3:43 pm

Can you take over from Garth?
———————-
The all seeing and knowing Garth? Doubt it.

#6 Barcino on 03.15.22 at 3:47 pm

Great post Sinan. Thank you!

To #3 Tammy: why so rude? go spend some time with Russian general Effoff…

#7 crowdedelevatorfartz on 03.15.22 at 3:54 pm

I pulled a Ponzie.
At first I thought you were talking about Ronald Reagan.
I was thinking,” $8 million? Is that all?”
Until I checked the name again.
Call me Ponziefartz.

#8 Ponzius Pilatus on 03.15.22 at 4:10 pm

#167 Shawn on 03.15.22 at 2:30 pm
Used Car Price Data?

#153 Ponzius Pilatus on 03.15.22 at 1:06 pm
#139 Shawn
1. StatsCan excludes used cars and trucks like it always has due to lack of data. (Is that so surprising? I sold a used car the other day, StatsCan will never see that transaction. Used cars are really a big deal?)
—————-
Lack of data?
Here in BC, you have to fill out a transfer form, before new license plates are issued.
And you gotta pay GST.

***********************************
Point taken. So maybe StatsCan could get used car prices and I suspect they will. But doubt it is a huge impact. Maybe they can get it in in time for it to show a decrease in used car prices by next Fall?

I’m not sure if my buyer has to pay GST or not. I sold my old 2003 Honda CRV with just 233k on it for $500. Sold it cheap to a friend of the family because an extra $1000 is not much to me and a lot to the kid I sold it to. And as a bonus I guess he pays far less GST. I gotta make room for my Tesla coming soon.
———————–
Funny, I sold my old 1995 AUDI A6 with 320 km 5 years ago for 500 bucks to an Uni Student. Nice kid.
Could have gotten more, but gotta support the next generations of doctors and scientists.
As for GST, in BC, ICBC collects it and forwards it to the Government.
Not sure why we would pay twice for the same car.
CEF would call it a tax grab.
As for the Tesla:
Don’t become a Sailo, will you.

#9 Linda on 03.15.22 at 4:12 pm

‘Ron’ illustrates how those who live within their means & emulate the tortoise in Aesop’s fable will end up being one of those ‘lucky’ folks. Of course, there will be those who will claim it was ‘easy’ & that Ron won the birth lottery; as per the naysayers no one born today with Ron’s education etc. could ever do as well financially. The fact that not even his family knew he had that much $ tells me he was one smart cookie. No requests for financial aid or expectations of inheritance to mar relationships with.

#10 Danger Dan on 03.15.22 at 4:15 pm

To be fair, I’m sure that most people touching crypto, meme stocks and gold bricks understand they’re not investing in stable growth assets.

I’ve known my fair share of Ron types in my life and, while I appreciate the wisdom of the slow and steady approach, I also don’t see these people as role models to aspire to, and will probably forget about him altogether by the time my head hits the pillow tonight

#11 Lester on 03.15.22 at 4:21 pm

I’m kinda missing that dudes endgame here … the guy with the biggest portfolio when he dies wins?
Bet his family was PO’d.

#12 Alberta Ed on 03.15.22 at 4:22 pm

Good advice. My father-in-law advised us to invest even as little as $10 a week (which seemed a lot, 50+ years ago, when we didn’t have two nickels to rub together). But we started investing when we were able to, and decades later it showed how smart he was.

#13 RI on 03.15.22 at 4:22 pm

Well Said Danger Man!

The person who never enjoyed that money, nor let his kids put it to any use is ‘ not a winner’ in my assessment. God bless him

#14 Ponzius Pilatus on 03.15.22 at 4:24 pm

Wow.
The guy really stiffed his relatives.
I gotta say : Good for him.
They probably would have sued it other like the Rogers family feud.
In the end, only the lawyers would have made it out rich.
But, surely they must have contested the will?

#15 Shawn on 03.15.22 at 4:25 pm

Well done Ron.

I wonder what set Ron on this path of investing in quality companies for the long term?

Did he read a book? Did he emulate someone? Did some broker get him into it in the early days? In most of his investing lifetime you had to go through a broker.

Buying and selling cost a big commission. So just being cheap could lead to a buy and hold forever strategy. Holding forever also avoided capital gains taxes. (Which only came in in Canada circa Valuation Day about 1971.)

#16 TurnerNation on 03.15.22 at 4:29 pm

My view is that as we are paying at least 50% of our net to taxation (including consumption, karbon taxes, gas taxes you name it there are 101 more more of ’em. And capital gains taxation) that we should have already the gold plated Hospitals, Libraries, and so forth.


#46 Dogman01 on 03.14.22 at 5:45 pm

^^ Bonus Smoking Man find!! He was ahead of this time.



So to where is all that taxation going? To favoured friends of The Party. Do not leave a cent to this corrupted Former First World Country.

“‘Globe says Ottawa subsidizing Microsoft, others
The Globe and Mail reports in its Tuesday, March 15, edition that Ottawa’s new $4-billion program to upgrade the technology of small businesses amounts to a subsidy for foreign-owned tech giants, industry leaders say. The Globe’s Chris Hannay writes that the federal government announced the Canada Digital Adoption Program earlier this month, which provides grants and loans for small- and medium-sized businesses to pay for a variety of digital needs, from social-media advertising to network security software. Experts in the tech industry, however, say the program has no provision to direct that spending toward domestic firms, so most of the money will end up flowing to giant foreign-owned platforms, such as Facebook, Google and Microsoft. (stockwatch.com)””

#17 Dr V on 03.15.22 at 4:32 pm

“Over time he continually dollar cost averaged”

“He took comfort in buying securities of strong corporations that paid steady and rising dividends.”

DCA?? Individual securities?? Dont tell garth!

#18 Brett in Calgary on 03.15.22 at 4:34 pm

Moral of the story: don’t make emotional choices. The biggest mistake is selling out of fear.

#19 Ed on 03.15.22 at 4:35 pm

A timely piece showing the power of saving & dividend investing.
My only complaint is that dying with 8 million in the bank is a bit of a fail.

#20 pPrasseur on 03.15.22 at 4:38 pm

Don’t Obsess Over Short-Term Performance

Unless you’re Chinese and your stock market just crashed by almost 80%!!!!

https://tradingeconomics.com/china/stock-market

All the while their gigantic RE Ponzi bubble is on the brink too.

Nice going chairman Xi!

Invest where there is freedom.

#21 David on 03.15.22 at 4:43 pm

Ronald was smart to leave “most of his $8 million estate to his local library and hospital.” Those charitable donations would have eliminated all capital gains taxes leaving some tax-free money to pass along to family members. In the long run state planning could be the most important of an investment strategy. You never know when the grim reaper will come calling.

#22 Mark Mywords on 03.15.22 at 4:44 pm

Read’s investment success shows you don’t need big income to accumulate a 7-figure portfolio.

7 figure is so 2014ish.
8 figures is where it’s at now, baby!

#23 Bob in Hamilton on 03.15.22 at 4:45 pm

Did Ron enjoy any of that fortune? At all?

#24 jess on 03.15.22 at 4:48 pm

BA.2 to overpower BA.1,

more reasons to keep masks

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1060337/Technical-Briefing-38-11March2022.pdf

#25 Sail Away on 03.15.22 at 4:57 pm

Thanks Sinan, these stories are always heartwarming.

As the Greek poet Archilochus wrote, “the fox knows many things, but the hedgehog knows one big thing.”

…and that’s what is needed: that one big thing. I’d venture that one big thing is emotional control. Smart people, energetic people, motivated people are everywhere. But someone who can control their emotions? Now that’s an anomaly.

#26 Faron on 03.15.22 at 5:04 pm

@Sail Away

I would argue your apparent moralizing delight in the deaths of two young travelers at the hands of the Taliban is far more ghoulish. As would your apparent joy in seeing a killer walk in Wisconsin. Mortality at the hands of a child (Kyle) and fundamentalist religious nuts (Taliban and also Kyle) is actually heartless, cruel and ghoulish.

Besides, you have fervently told us many times that money is just a meaningless construct. It isn’t exactly cruel to wish less meaninglessness on someone is it?

#27 DON on 03.15.22 at 5:09 pm

Telsa was buying aluminum from Russia prior to the Ukraine War. Have they stopped, anyone know?

#28 shopping carts on 03.15.22 at 5:24 pm

#168 Daveyboy on 03.15.22 at 2:32 pm
@157. All my friends, working for Walmart in Arkansas are already back to work.

/////////////////

Well of course they are. Who else is going to collect the shopping carts from the parking lot.
;)

#29 crowdedelevatorfartz on 03.15.22 at 5:28 pm

@#14 Ponzies Payola
“In the end, only the lawyers would have made it out rich.”

+++

Oh, I’m sure more than a few accountants got their pound of flesh out of that estate.

#30 Søren Angst on 03.15.22 at 5:32 pm

How you know it’s about to end.

“Russia asks China for drones and meals for the troops”

https://tg24.sky.it/mondo/2022/03/15/guerra-ucraina-russia-cina-droni-pasti?social=twitter_skytg24_photo_null

Had seen videos from the Ukrainians of rations from destroyed troop transports dating back to 2015 and of Russian soldiers looting grocery stores for food (https://www.instagram.com/ukraine_defence/?hl=en).

It wasn’t propaganda after all.

#31 Slim on 03.15.22 at 5:35 pm

Did Ronald have a spouse and kids? Amazing he kept this all a secret for so many years from his family.

#32 Sinan Terzioglu on 03.15.22 at 5:35 pm

#17 Dr V – Thanks for your comment. Ron was very diversified and basically created his own ETFs because he owned several dozen securities – Sinan

#33 Like a Bad Smell on 03.15.22 at 5:35 pm

#26 Faron on 03.15.22 at 5:04 pm
@Sail Away

I would argue your apparent moralizing delight in the deaths of two young travelers at the hands of the Taliban is far more ghoulish. As would your apparent joy in seeing a killer walk in Wisconsin. Mortality at the hands of a child (Kyle) and fundamentalist religious nuts (Taliban and also Kyle) is actually heartless, cruel and ghoulish.

Besides, you have fervently told us many times that money is just a meaningless construct. It isn’t exactly cruel to wish less meaninglessness on someone is it?

===========================================

At least SA doesn’t repeatedly have childish tantrums about leaving and then…never leave.

He’s constantly yanking your chain and you can’t even seem to tell. Yer a joke bro straight up.

#34 Chameleon on 03.15.22 at 5:35 pm

I take another day off and Penguin yesterday!

This blog is truly diversifying!

I must never skip a day, when I do…I miss out.

#35 Dr V on 03.15.22 at 5:41 pm

173 sailo

“I do not give investing advice. I do sometimes mention
my trading action. Two entirely different things.”
——————————————-

Yes, you are very consistent at qualifying your trades.

#36 willworkforpickles on 03.15.22 at 5:43 pm

With the building national debt having risen well into unsustainable territory dictating the future of money now , it is different this time …very different in what’s ahead.

Historical diversified investment strategies that worked with a future attached will not work going forward with all the unprecedented adverse anti portfolio change about to overwhelm the economy .
We are in the beginning stages of an epic game changing, unparalleled economic crises that never previously existed in modern times. Not ever.

Investing calls for an entirely different approach today than what worked before over the long haul.
The old guard won’t continue to prevail standing pat using tried and true methods of investing that are now being rendered obsolete and dangerous to follow.

The old investing strategies still being followed will all fall far short in building and protecting your wealth with what’s coming in the next few years.

#37 VladTor on 03.15.22 at 5:45 pm

to #2 Property Accountant on 03.15.22 at 3:29 pm
After all, Ronald Read could have enjoyed the life a bit more for that 8 M before he kicked the bucket.
No doubt about that.

*************

You make me laughing!

Agree! Can’t agree with you more!

To use money need to have at least some education and as result some imagination.

#38 Full Moon Faron on 03.15.22 at 5:45 pm

#26 Faron on 03.15.22 at 5:04 pm
@Sail Away

I would argue your apparent moralizing delight in the deaths of two young travelers at the hands of the Taliban is far more ghoulish. As would your apparent joy in seeing a killer walk in Wisconsin. Mortality at the hands of a child (Kyle) and fundamentalist religious nuts (Taliban and also Kyle) is actually heartless, cruel and ghoulish.

Besides, you have fervently told us many times that money is just a meaningless construct. It isn’t exactly cruel to wish less meaninglessness on someone is it?

/////////////

Must be a full moon eh Faron.

Re reading Sailo’s old posts.
You should seek help.

I used to be a werewolf but Im okay nowwwwwwwwwwwwww

#39 Nick on 03.15.22 at 5:49 pm

Good, sound advice spoken with a level head – difficult for some of us to keep these days… Thanks for the good read Sinan.

#40 XEQT and chill on 03.15.22 at 5:55 pm

Great post given our current investing climate of fear and uncertainty.

#41 Dr V on 03.15.22 at 5:56 pm

32 Sinan

“Ron was very diversified and basically created his own
ETFs because he owned several dozen securities”
——————————

I like the “Dr V hate index”. Think of all the businesses you hate but have to deal with – bank, gas station, cell
phone provider, cable, power utility, grocery
chain…invest in them.

Then as a bit of a hedge, invest a little in the ones that
make. sell or do things you enjoy – cell phone manufacturer, retailer, streaming service…….

#42 pPrasseur on 03.15.22 at 6:01 pm

China’s companies on NYSE down 80% since summit. 58% in 2022.

https://www.tradingview.com/symbols/NYSE-CZH/

Somebody smell a financial crisis?

#43 Earlybird on 03.15.22 at 6:17 pm

Love this story…..live well within and below your means and invest the rest!
I betcha that brought him some peace of mind…hence the long life!

#44 Shirl Clarts on 03.15.22 at 6:18 pm

#23 Bob in Hamilton on 03.15.22 at 4:45 pm
Did Ron enjoy any of that fortune? At all?
^^^^^^^^
Seems his enjoyment was watching it grow. It only does that while it is invested. The family must have been pissed.

The problem with today’s youth is they lack stamina for delayed gratification. They crave FIRE (Financial Independence, Retire Early), but are unwilling to make the required sacrifice(s).

#45 Faron on 03.15.22 at 6:27 pm

#33 LBS

love all the extra anonymous creeping that happens on sail’s weak behalf.

What can i say? Can’t resist tossing a rotten couch onto a dumpster fire.

#46 crowdedelevatorfartz on 03.15.22 at 6:38 pm

@#30 Soren.
“It wasn’t propaganda after all.”

+++

As I stated here a few weeks ago.
A former co-worker who is Ukrainian and spent 4 years in the Russian army as a young conscripted soldier.
“The officers don’t give a shit about the troops”

Apparently now the corruption in the military is just as bad as the rest of Russia.
Ghost troops salaries getting paid to officers.
Stolen hardware sold on the black market.
Food, fuel, bullets and bombs …all for sale.

I guess thats why Putin needs 15,000 Chechen mercenaries.
The Dogs of War.

#47 Barb on 03.15.22 at 7:07 pm

“…many are borrowing to maintain lifestyles.”
———————–
Recently heard of a young family who charged a 2 adults 2 kid vacation to their CC.
Stunning failure of responsibility!

#48 Sail Away on 03.15.22 at 7:12 pm

#45 Faron on 03.15.22 at 6:27 pm
#33 LBS

love all the extra anonymous creeping that happens on sail’s weak behalf.

——–

It’s not on my behalf. They are reacting on your actions.

You present as a mean, vindictive and extremely insecure person who is terrified of ever being wrong, to the point where you personally attack anyone who either disagrees with you, or supports someone who disagrees with you, and your response is immediate descension to the most personal and despicable insults, broad-brushing their every good and praiseworthy action and previous positive interactions with the most heinous accusations and innuendo.

People don’t like people like that. Erratic and unstable individuals are to be avoided for the continuation of a stable species. Instinct.

Many don’t respond, or won’t do it under their regular pseudonym because they have no interest in being the recipient of endless, insulting, ad hominem diatribes. Fact.

#49 Ponzius Pilatus on 03.15.22 at 7:19 pm

#44 Shirl Clarts on 03.15.22 at 6:18 pm
#23 Bob in Hamilton on 03.15.22 at 4:45 pm
Did Ron enjoy any of that fortune? At all?
^^^^^^^^
Seems his enjoyment was watching it grow. It only does that while it is invested. The family must have been pissed.

The problem with today’s youth is they lack stamina for delayed gratification. They crave FIRE (Financial Independence, Retire Early), but are unwilling to make the required sacrifice(s).
————–
There’s no problem with today’s youth.
All you do is dating yourself, with such a silly comment
Like “When I was young the snow went right up to my nose”

#50 Mattl on 03.15.22 at 7:23 pm

Cool story, and instructive, but not sure I understand the point of investing over 6 decades then leaving all that money to the Library. Interesting to be so dedicated to saving, but lack interest in spending.

#51 Ponzius Pilatus on 03.15.22 at 7:25 pm

If you look at the picture, Ronnie did not splurge on fancy Chistmas Dinners.
No wonder, everyone was surprised that he had that kind of money.
I think, sometimes you should just treat yourself and the people around you.

#52 Ralph on 03.15.22 at 7:26 pm

I think I remember the story. He lived in New England, Vermont I believe, married late and had one stepson. He could be found in the local coffee shop every morning reading the Wall St. Journal. He made sure his family was well provided for after his passing. Slow ands steady wins the race.

#53 Faron on 03.15.22 at 7:28 pm

#38 Penny Henny on 03.15.22 at 5:45 pm

Re reading Sailo’s old posts.

Hi Penny. No, it’s called “memory”. As in, I also remember that you were unceremoniously banned.

I do, however, have a document of everything that Sail Away has written here. wget is a powerful tool.

#54 Ponzius Pilatus on 03.15.22 at 7:34 pm

#15 Shawn on 03.15.22 at 4:25 pm
Well done Ron.

I wonder what set Ron on this path of investing in quality companies for the long term?

Did he read a book? Did he emulate someone? Did some broker get him into it in the early days? In most of his investing lifetime you had to go through a broker.
————
Very few people ever got rich reading a book.
People writing them, certainly do.
BTW, was Ronnie Scottish..
That would explain a lot.
Lol

#55 Philco on 03.15.22 at 7:37 pm

#20 pPrasseur on 03.15.22 at 4:38 pm
Don’t Obsess Over Short-Term Performance

Unless you’re Chinese and your stock market just crashed by almost 80%!!!!
https://tradingeconomics.com/china/stock-market
All the while their gigantic RE Ponzi bubble is on the brink too.
Nice going chairman Xi! (Huawei subsidized criminal cell network deployed globally)lol
Invest where there is freedom.
=======================
Wahoooooo early Christmas prez.
That out fit having to much money and power is scary.
Their plan for global dominance may have hit a brick wall.
Free peeps = Happy peeps.

Oh the mayors calling…I ain’t kidding their plans to change my cities name.

#56 Shawn on 03.15.22 at 7:41 pm

The Alberta Economy

See the green on the screen.

Not too late to move over here.

https://economicdashboard.alberta.ca/

#57 Flop… on 03.15.22 at 7:47 pm

The night I told my wife that I had 8 million hidden from her the last 20 years, would be the last night of my life.

I’ll keep telling her I’m poor, at least she has no reason to strangle me…

M47BC

#58 UmiouiuS on 03.15.22 at 7:50 pm

Sinan,

an uplifting story. And very well written. Made my day, thanks.

#59 Shawn on 03.15.22 at 7:50 pm

Frugal and Rich

#51 Ponzius Pilatus on 03.15.22 at 7:25 pm
If you look at the picture, Ronnie did not splurge on fancy Chistmas Dinners.

Warren Buffett wrote some years ago that he then had a card in his wallet entitling him to free food at McDonalds. He joked that the Buffett family would be heading to McDonald’s for Christmas dinner.

If he still had the card later, he does not actually use it. There was a television story about him whereby his wife gives him exact change every morning for a breakfast sandwich at McDonalds.

He was of course famously relatively frugal in his life. No yachts for him. Cherry Coke bought on sales. But not always frugal by ordinary standards, not in recent decades.

#60 DON on 03.15.22 at 7:52 pm

Maybe Ron used his investments just for a sense of security while he enjoyed the bliss. Good for him. Life is about experience.

Hey Faron. That wget thing, can you give me a quick link or couple of words. I could use that for another poser. Cheers!

#61 Observer on 03.15.22 at 7:57 pm

#48 Sail Away on 03.15.22 at 7:12 pm
#45 Faron on 03.15.22 at 6:27 pm
#33 LBS

love all the extra anonymous creeping that happens on sail’s weak behalf.

——–

It’s not on my behalf. They are reacting on your actions.

You present as a mean, vindictive and extremely insecure person who is terrified of ever being wrong, to the point where you personally attack anyone who either disagrees with you, or supports someone who disagrees with you, and your response is immediate descension to the most personal and despicable insults, broad-brushing their every good and praiseworthy action and previous positive interactions with the most heinous accusations and innuendo.

People don’t like people like that. Erratic and unstable individuals are to be avoided for the continuation of a stable species. Instinct.

Many don’t respond, or won’t do it under their regular pseudonym because they have no interest in being the recipient of endless, insulting, ad hominem diatribes. Fact.

^^^^^^^^^^^^^^^

Wow. That was quite the example of projection.

#62 Ronny on 03.15.22 at 8:05 pm

The NASDAQ is officially in bear territory,

The biggest commodities dealers in the world are breaking – Nickle big shot and now Trafigura

And the bond market, the place everyone likes to hide, is having its worst year ever.

But if you know whats good for yah – stay invested

#63 SW on 03.15.22 at 8:12 pm

#47 Barb on 03.15.22 at 7:07 pm
“…many are borrowing to maintain lifestyles.”
———————–
‘Recently heard of a young family who charged a 2 adults 2 kid vacation to their CC. Stunning failure of responsibility!’

Not really. I charge all my spending to a CC. Including flights, gas, car bills, marina fees, online purchases and food. Many, many tens of thousands a year.
Nothing wrong with that. The CC company gives us a fine kickback in cash once a year.

The wrong thing would be not to pay it off, in full, every month. (Call me a parasite on businesses, I don’t much care.)

#64 kommykim on 03.15.22 at 8:18 pm

RE: #50 Mattl on 03.15.22 at 7:23 pm
Cool story, and instructive, but not sure I understand the point of investing over 6 decades then leaving all that money to the Library. Interesting to be so dedicated to saving, but lack interest in spending.

=======================================

It’s essentially the same effect as when people live paycheque to paycheque. Habit. Once you get used to a certain lifestyle, and spending habits, it becomes almost effortless to carry on as you always have.
Imagine someone happy with earning $70K a year. Then they get a big promotion and end up earning $100K a year, but simply carry on with their old lifestyle and invest the extra $30K every year.

#65 crowdedelevatorfartz on 03.15.22 at 8:25 pm

@#51 Ponzies Party!
“I think, sometimes you should just treat yourself and the people around you.”
++++
So?
Where are you “treating” us?
The Schnitzel Haus?

#66 Dr V on 03.15.22 at 8:26 pm

53 Faron – wondering if you had anything to add to today’s story about Ron. Thanks

#67 DON on 03.15.22 at 8:28 pm

So the price of oil is down just under $100, but the price of gas is seemingly sticky on the way down. And here I thought oil was sticky.

#68 willworkforpickles on 03.15.22 at 8:32 pm

In about 4 years when a great many come to realize the fallacy of the investment route they have taken whether it came by advisement or other means , it will be too late to salvage the wealth you’ve slaved over and built up for so many years.
Following old outdated investment strategies that people still religiously do will prove dangerous even detrimental to your very existence in the dwindling years of this decade .

#69 DON on 03.15.22 at 8:36 pm

#61 Observer on 03.15.22 at 7:57 pm
#48 Sail Away on 03.15.22 at 7:12 pm
#45 Faron on 03.15.22 at 6:27 pm
#33 LBS

^^^^^^^^^^^^^^^

Wow. That was quite the example of projection.

%%%%%%%%%%

Affirmative Ghostrider!

#70 Balmuto on 03.15.22 at 8:46 pm

The Ronald Read story honestly sounds like the classic miser story to me. To each his own though.

Regarding savings, it really is hard when you’re young. You’re not making that much money, you’re buying things on credit because you want to have a life, and any income you have left over goes to pay down debt. And especially nowadays with the cost of rent/housing, good luck having any money left over for savings.

The trick is once you get into your prime earning years, don’t up your lifestyle too much. Automatic deductions are your friend here. It’s easier to set aside money that you never got used to having.

#71 crowdedelevatorfartz on 03.15.22 at 8:50 pm

Hmmmm
What an interesting idea…
A UN Peacekeeping mission in Ukraine…..

https://nationalpost.com/news/world/polands-deputy-pm-calls-for-peacekeeping-mission-able-to-defend-itself-in-ukraine

#72 Daniel on 03.15.22 at 8:59 pm

#21 David,…silly boy, the distinguished gentleman left his estate to Charity. Whatever tax benefits as a result will go to his estate (the charities) so there is no money going tax free to his children/family.

#73 Daniel on 03.15.22 at 9:04 pm

Sinan, what a BS storyteller. You have no idea what this gentleman thought about and how he chose to invest his money unless you have inside information as in direct access to his portfolio over the last 50 years. That would be useful in examining and most importantly, provide some insight and accuracy as to what companies he owned and not some conjured idea of how he thought and invested to sell your story of buy and hold through thick and thin. I don’t disagree, just don’t like the smoke and mirror effect of your story telling.

#74 Grasshopper on 03.15.22 at 9:04 pm

Turner Nation might find this of interest

https://ktdi.org/

Known Traveller Digital Identity

#75 just say no on 03.15.22 at 9:09 pm

I want to live! I want to love! I want to dance! I want to go out with 0 it is the only way to go baby!!!!!!!

#76 just say no on 03.15.22 at 9:17 pm

I am not impressed at all, you can not be happy and selfish at the same time, he could a paid a few homeless peoples rent or been there for someone? He may have or he may have not but in most case it is all selfish misery. He will not be remembered in a good way by many. I am just letting loose for all the suffering going on in these times. Shameful

#77 Catalyst on 03.15.22 at 9:29 pm

I definitely am not going to die with $8MM in the bank.

#78 Apocalypse NOW on 03.15.22 at 9:40 pm

Beware the Ides of March.

And all the horrors about to follow.

PREPARE

#79 cramar on 03.15.22 at 9:55 pm

Ronald Read was certainly an interesting study. He worked as a gas station attendant then a part-time janitor. He lived frugally and investing wisely.

Listen and learn Gen Z. This is the guaranteed way to accumulate wealth. (Unlike Read you might want to spend a bit on yourself.)

https://en.wikipedia.org/wiki/Ronald_Read_(philanthropist)

#80 yvr_lurker on 03.15.22 at 10:01 pm

Interesting story, however factual or otherwise it may be. My goal of leaving a nestegg is so that my kid has a much easier go than me and that my wife is well-provided for. Although I give generously to all sorts of animal causes, I don’t plan on leaving 8M to the library. If I was single just looking out for myself, I would plan on dying with zero and having as many experiences as I could in the interim (ecotourism all over the planet), and supporting my favourite causes along the way.

#81 other guy in Vancouver on 03.15.22 at 10:03 pm

Anyone here earn an honourable mention on Putin’s blacklist?
https://mid.ru/ru/foreign_policy/news/1804374/

#82 Mr Fox on 03.15.22 at 10:03 pm

Why are we always talking about how much the s&p 500 returned over a period of time when the BnD portfolio by being less riskier doesn’t have the same returns? Shouldn’t we talk about what the BnD portfolio returns were during the same period?

#83 Smoking Man's Old Man on 03.15.22 at 10:06 pm

Judging from the comment section it sound like a lot of people here have never experienced “contentment”.

If you think you can buy your way to happiness you’re fools.

Leaving money to libraries and hospitals strikes me as noble.

#84 Doug t on 03.15.22 at 10:26 pm

My grandmother was born in 1897 – I remember in the 70’s her “stash” of Players cigarette tins full of SILVER coins ( dimes, quarters, 50 cent and dollars) stuffed in various cupboards that she would take down to give my brother and I some “pin money” – we would go to the corner store and load up on penny candy – I still have many of the coins she gave us – good times good times

#85 Shawn on 03.15.22 at 10:27 pm

About paying credit card in full

Number 63 SW said of this:

“The wrong thing would be not to pay it off, in full, every month. (Call me a parasite on businesses, I don’t much care.)”

*******************************
The credit card company still makes plenty from you since the merchants you spend at are paying roughly 2% or more to the credit card companies. Bizarrely they let in a rule years ago that if we use a gold card (points card) the merchant generally pays an extra 1%.

People talk about our big 5 banks as an oligopoly.

That’s nothing compared to just two major credit card companies. And most businesses have no choice but to accept both VISA and MasterCard even if it costs them 3%.

Check out the stock gains of those two since they went public circa 2010. Astronomical. Because of near monopoly power.

If there is a parasite here, it’s not you CW.

I’ve made a good return owning Visa…

#86 Shawn on 03.15.22 at 10:34 pm

Ronald Read

I see some sort of sniffing here that yeah but he did not enjoy the money or was somehow selfish.

The point of the story was a very ordinary person amassing $8 million. What business of ours if he donated to charity rather than his brats if he had any? who by then would have been past 60 and shoulda made their own way.

You all can do what you want with your $8 million, just as Ronald did. Or spend more and invest less. To each his own.

Personally I think it would be sad to leave it to your kids at age 92. If you want to help your kids do it at least partly while they are far younger or don’t bother.

Buffett is donating every cent of his Berkshire wealth. He has a good bit outside Berkshire… less than 1% of his wealth but nevertheless hundreds of millions. So his family is taken care of but not spoiled for eternity.

#87 Great Bear on 03.15.22 at 11:13 pm

Hmmmm, Ron’s estate doesn’t match either of your 20 or 30 year estimates. With 8 million to account for he was either investing for over 100 years and receiving a much higher return or he was invested in something with more success than an estimated 7%.

0 to 8 million is possible, but not at $1000 a month of his janitors salary. People in the school janitor business just didn’t make that much starting 30 years ago. Average wages were much less than $1000.00. Certainly not enough to sock away $1000 p/m.

So, Ron might have found pirate treasure, robbed a bank, inherited, but he certainly didn’t amass $8 million as stated over that time. Ron might have been a dirty stinking cowboy breaking all the rules of b/d. He would have to have been. A few superstocks in Ron’s portfolio are the likely explanation.

Now, a bone to pick. A few days ago I offered speculation on a Russian invasion of the UN defended Canadian Arctic being easy pickings for a Putin because our government has failed to defend our sovereignty there. My query didn’t make the cut here. But now that Zelensky has proposed the same argument to Trudeau in our HOC, is my speculation not mainstream and prescient? Trudeau has once again been shown as a politician of hollow platitudes , don’t Canadians want more? The truckers rally and the truth shown with all the CBCs forced retractions show that they do.

Zelensky asked Trudeau directly “ What if it was you”? Likely embarrassing Trudeau again, but deservedly.

#88 Faron on 03.15.22 at 11:25 pm

#66 Dr V on 03.15.22 at 8:26 pm

53 Faron – wondering if you had anything to add to today’s story about Ron. Thanks

Thanks for guiding my attention to Sinan’s topic.

No, I have nothing to add. Sinan is a steady handed professional who practices and here describes the “mundanity of success”. Cumulative, small actions add up big.

In my case, the chunk of money I self-manage that has the least trades does best despite my belief that timing the market through modelling is doable. That’s why I give myself only a slice to “hedge” with. Still a bad idea.

#60 DON on 03.15.22 at 7:52 pm

Hey Faron. That wget thing, can you give me a quick link or couple of words. I could use that for another poser. Cheers!

I don’t want to give detailed instructions because it could cost Garth bandwidth. But, the documentation is here:

https://www.gnu.org/software/wget/

it’s a command-line beast that you need linux/unix for. That you can install into a virtual machine using a ubuntu live image. Or buy a droplet at Digital Ocean and log in.

#48 Sail Away on 03.15.22 at 7:12 pm

So, not a fan of the SAGI?

Check the tape bro. I didn’t insult you, that was Ustabe.

I certainly don’t like you based on your online persona. Not at all.

I wont reiterate the reasons why other than to say this: you embody the FYIGM attitude that is anathema to the cooperative and democratic society we have in Canada and have to a decreasing degree in the US. The people who lack humility, who relish materialism, who are egotistical, who are proud and who cheer violence are far more to be avoided than the erratic or unstable and are duly damaging to the “instinctive” society you just invented. These features nauseate me to the core and are surely revolting to me as they are to many other commenters. That overrides any “ideas” you have that I may agree or disagree with.

I’m also not here to make friends. So, surprise, I don’t have many in this crowd.

#89 Cyrus on 03.15.22 at 11:42 pm

Yeah, just live below your means, keep investing, don’t spend and don’t see the world, don’t try foods from other nations, just dont live life ok? inhale and exhale and wait till you die and become a dead millionaire

#90 Yukon Elvis on 03.15.22 at 11:55 pm

#53 Faron on 03.15.22 at 7:28 pm
#38 Penny Henny on 03.15.22 at 5:45 pm

Re reading Sailo’s old posts.

Hi Penny. No, it’s called “memory”. As in, I also remember that you were unceremoniously banned.

I do, however, have a document of everything that Sail Away has written here. wget is a powerful tool.
++++++++++++++

What are u gonna to do with that document Bubba ? Turn it in to the authorities ? Have you told your doctor about this ?

#91 stage1dave on 03.16.22 at 2:13 am

Mr. Terzioglu; thanx for highlighting the basics of investing with a personal story. Paradoxically, most of my working life has been time-sensitive, git ‘er done, simply ’cause its the nature of the business. But investment-wise, always been a “buy and holder”…well, until something better comes along.

I grew up in a family full of WW2 vets, and all of them had a “slow n steady” approach to investing (and life in general, I’d add) Plus, they all grew up during the depression. I wonder if they realized quite early in life that all the money in the world won’t buy you another moment if your number is up? Those life experiences are guaranteed to create a saner attitude toward investing and life in general.

One other thing I noticed was NOBODY talked about money! Or how much their house was worth, or countless other subjects that seem to dominate every second conversation these days…

Lately, I notice my mental thought processes about rebalancing my current investment portfolio have me wondering whether a couple minty ’54 Topps Gordie Howes are gonna appreciate faster than a minty ’84 5.0 litre Capri? Is a graded set of ’71 opc hockey a better hedge against inflation than a closet full of vintage Iron Maiden tour t shirts? Or is a decently restored ’59 Buick LeSabre gonna keep going up in value? And what do I enjoy more? And for how much longer?

Dunno, but its a lot more funner than some of the other investing I have to do…

Lastly, I knew a dude in SLC many years ago who often stated that his life’s goal was to drop dead owing AE a hundred grand…lotsa cash back then. He eventually succeeded at the former but not the latter. We lost touch over the years, but hope he had fun getting there!

#92 HUNGRY BEAR on 03.16.22 at 3:34 am

Great story

but did Ron live a full life?

Do you really want to live frugally so you can die rich?

What’s the REAL purpose of life on earth?

#93 crowdedelevatorfartz on 03.16.22 at 7:10 am

Well I see Trudeau was in full “grandstanding mode” yesterday in Parliament.

A shame the PM and MP’s gave Mr. Zelensky the impression they were actually going to do something for Ukraine other than bask in his fame and fill him with empty promises.

https://nationalpost.com/opinion/john-ivison-canada-hands-embattled-zelenskyy-hollow-words-and-symbolic-courage

But I’m sure all the self congratulating Wokesters in Parliament went to a six course dinner after that PR session feeling much better about themselves.

#94 ogdoad on 03.16.22 at 7:58 am

Slow and steady for content fools….ye who hesitates is lost…just like the suckers who have been sitting on the fence while no-nothing home owners are laughing all the way to the bank….makes ya cringe, doesn’t it…

Totally agree with a savings plan but you don’t have to sacrifice what little life you already have in order to achieve one….you can also take chances and risks without breaking the bank…

but, alas. Us losers write on blogs pretending we’re smart while the real winners of the life game are taking contentment by the horns. The time for regret is now!

Og

#95 Sinan Terzioglu on 03.16.22 at 8:03 am

#73 Daniel – You are missing the point – Sinan

#96 Sail Away on 03.16.22 at 8:20 am

#53 Faron on 03.15.22 at 7:28 pm

I do, however, have a document of everything that Sail Away has written here. wget is a powerful tool.

——–

Heck, my words are powerful unto themselves.

So… Ustabe’s thrice-repeated claim that I ‘yo momma’d’ his momma, resulting in a vow of perpetual lifetime dedication to all things Sail Away.

Did it happen?

#97 who knew?? on 03.16.22 at 8:27 am

markets are rigged. i wonder if anyone will go to jail for these illegal transactions?

AMC announces stand in Hycroft mining (what does a theater chain want with a gold mining company??)

HMYC Mar 2.5 calls (expires Friday) lifetime trades/volume
100014
1/31 4
2/1 4
2/8 3
2/17 2
2/24 5
3/7 2
3/8 5,158
3/9 1,741
3/10 11,104
3/11 33,104
3/14 5,841

3/15 deal announced

when this kind of thing becomes illegal (wait, it is) and punishable by jail time, and serious financial penalties, then we will believe in fairness of markets.

until then, crooks in congress, their friends, and a whole bunch of other scammers will take advantage.

#98 Quintilian on 03.16.22 at 9:47 am

Not really sure what to think about Ronald Read.

People can do the right thing for the wrong reasons, as giving away 8 million because you hate your family, or because you love libraries and hospitals remains a question.

What we know for sure, is that he was loved by his stock broker and financial advisor.

#99 BillyBob on 03.16.22 at 10:18 am

DELETED

#100 I smell a sequel! on 03.16.22 at 10:32 am

#53 Faron on 03.15.22 at 7:28 pm

I do, however, have a document of everything that Sail Away has written here. wget is a powerful tool.

================================

Presenting the plot for “Mean Girls 2”, except instead of starring Lindsay Lohan features a loser middle-aged scientist so pathetic he uses computer scripts to compile his Burn Books.

#101 pPrasseur on 03.16.22 at 10:38 am

Inflation now running at 5.7% in Canada which likely means somewhere be 10 and 15% in reality, at least if this data was calculated as it was pre- 1980 and 1990:

http://www.shadowstats.com/alternate_data/inflation-charts

Most people are being wiped, this is what it means. You can guess where we’re heading…

#102 Satori on 03.16.22 at 10:48 am

There is a good documentary on NetFlix about the generational issue… called The Social Dilemma.

Boomers are the hardest workers. They avoid loafing around and have a good work ethic.
Gen Z’s are concerned about work/life balance and well being. Paid time off, mental health days, a sense of community and being heard. (I work with many, and one simple ask turns into a page long email with ‘feelings”
Gen X still has a good work ethic. First kids of BOTH parents who worked outside of the home. They seem to integrate work with their lifestyle, focus on success and prefer to be in control of the end product of their work.

#103 Observer on 03.16.22 at 10:51 am

#88 Faron on 03.15.22 at 11:25 pm
#48 Sail Away on 03.15.22 at 7:12 pm

I certainly don’t like you based on your online persona. Not at all.

I wont reiterate the reasons why other than to say this: you embody the FYIGM attitude that is anathema to the cooperative and democratic society we have in Canada and have to a decreasing degree in the US. The people who lack humility, who relish materialism, who are egotistical, who are proud and who cheer violence are far more to be avoided than the erratic or unstable and are duly damaging to the “instinctive” society you just invented. These features nauseate me to the core and are surely revolting to me as they are to many other commenters. That overrides any “ideas” you have that I may agree or disagree with.

^^^^^^^^^^^^^^^

Indeed.

#104 Ponzius Pilatus on 03.16.22 at 10:59 am

#93 crowdedelevatorfartz on 03.16.22 at 7:10 am
Well I see Trudeau was in full “grandstanding mode” yesterday in Parliament.

A shame the PM and MP’s gave Mr. Zelensky the impression they were actually going to do something for Ukraine other than bask in his fame and fill him with empty promises.

https://nationalpost.com/opinion/john-ivison-canada-hands-embattled-zelenskyy-hollow-words-and-symbolic-courage

But I’m sure all the self congratulating Wokesters in Parliament went to a six course dinner after that PR session feeling much better about themselves.
———————————
So, what in your esteemed opinion should JT have done.
Hand over billions to a complete novice in the business of war.
I thought you were all for balancing the budget.
The Americans were duly impressed with Zelensky’s speech to the congress, and shelling out another 800 mill,
that will go, who knows where.
The job here is to avoid an all out war between NATO and RUSSIA, not to cater to over-sized egos on both sides.
Unfortunately, innocent lives are being lost, but that has been the sad reality of mankind since Adam and Eve.
Maybe there’s truth of an self-destructing gene in our collective DNA.

#105 millmech on 03.16.22 at 11:31 am

I wonder if we will see rates get bumped up a full point to tame inflation, going to be .5 point at every meeting now I believe. If that does not slow down inflation I would not be surprised to see a 1% bump to shock inflation, maybe 4% BOC rate by the end of this year is possible.
Prime rates would be 6.7%, most mortgages would be renewed at 7% plus.
Very interesting, Ides of Volcker.

#106 dragonfly58 on 03.16.22 at 11:34 am

Ron’s story just strikes me as sad. Waiting all those years for a life improved by wealth that seemingly never happened.

#107 dragonfly58 on 03.16.22 at 11:51 am

#70, Balmuto, that’s a good concept . But reality for many is that those prime earning years are also the peak years for family related expenses. Fact of life is even a modest, 1 or 2 offspring burn up income as fast as a divorce , yacht or mistress.
By the time the kids are no longer a cost item , many parents are well into their 50’s and a bit late for investments to play a major role.

#108 Dharma Bum on 03.16.22 at 11:56 am

#23 Bob in Hamilton

Did Ron enjoy any of that fortune? At all?
————————————————————————————————–

Truly wise people understand that the enjoyment is in the process.

https://qaspire.com/2010/06/30/enjoy-the-process/

#109 Sail Away on 03.16.22 at 12:12 pm

#88 Faron on 03.15.22 at 11:25 pm

you embody the FYIGM attitude that is anathema to the cooperative and democratic society we have in Canada and have to a decreasing degree in the US. The people who lack humility, who relish materialism, who are egotistical, who are proud and who cheer violence are far more to be avoided than the erratic or unstable and are duly damaging to the “instinctive” society you just invented.

——-

Let’s examine, shall we? Specifically:

*FYIGM attitude- really? I want everyone to be as successful as they possibly can be. I have no time for whining, it is true. Kudos to success, always.
*Lack of humility- possibly. I’m definitely not needlessly humble. Hey, I’m a good wingshot, have a quite excellent investing track record and a top notch, highly-rated engineering business. When I make a mistake, I own it.
*Relish materialism- in what way? I greatly enjoy making money, but much of it is tied up in business and RE or invested and gainfully generating return. Heck, I live remotely in an unserviced tipi for about 2 months per year. My hero Elon lives in a $50k insta-house. When buying a product, though, I’ll always opt for the best available, it is true.
*Egotistical, proud- sure, probably
*Cheer violence- when and where? With Kyle Rittenhouse, I cheer a fair and impartial jury returning a just verdict. Similar with Ahmed Arbery. Violence is, of course, often necessary. In war, for example. And I have participated in violence. It is part and parcel of humanity, there’s no denying that- everybody cheers a justified comeuppance.

I have very little interest in responding to your daily rants slagging me, and consider it mostly a wasted post that wastes blog space better used for on-topic, or at least financial blog or dog discussion, but humans do have an instinctual need to explain themselves and since I bear at least a passing resemblance to a human, will often respond to your more viciously unfair posts. You may notice I very rarely initiate discussion with you? I’m trying to get to zero but sometimes need to revisit an investment success you slagged at the time it was done.

#110 Dharma Bum on 03.16.22 at 12:12 pm

#49 Ponzie

Like “When I was young the snow went right up to my nose”
—————————————————————————————————

Give that individual a break, Ponz. In their case it was true. Then again, it was a case of being vertically challenged at 2’3″ tall.

Snowy days were hell.

#111 Sail Away on 03.16.22 at 12:33 pm

#106 dragonfly58 on 03.16.22 at 11:34 am

Ron’s story just strikes me as sad. Waiting all those years for a life improved by wealth that seemingly never happened.

———

I expect he was very content and very satisfied.

I have many older friends and family in similar situations, living happily and frugally. No need for ostentatious living or material goods… but a great interest in financial matters and investing; this is their hobby that brings immense pleasure.

Many don’t talk about it because, in certain demographics, wealth brings envy, expectation and condemnation, so they stay quiet. But… these same people, if you show an interest, knowledge and aptitude… will talk your ear off.

Lots of knowledge there. Never demonize boomers; learn from them.

#112 Ian on 03.16.22 at 1:05 pm

Shocking how many commenters consider Ron’s desire to put his money towards helping others is considered a waste of a life. Bravo Ron for a wise investment strategy and selfless life.

#113 WTF on 03.16.22 at 1:06 pm

I’m on track with the Ronster.
Assuming 6% Compounded annually will hit his number at age 84.I have no desire to do that, Decumulation phase commencing.
—————————————————————-
Read a great reference to the Pointless Trucker Occupations.

“The Timbit Taliban”

#114 Faron on 03.16.22 at 1:43 pm

#98 Sail Away

I haven’t bothered to look. I asked for the dates or keywords. You comment here more than I, searching sequentially would be tedious. However, Ustabe posts at the rate of a stable and orderly person, so i could go that route. I will report with fidelity if i find the incident.

@ Yukon Elvis
I explained previously that I downloaded the archive of comments after Sail Away revealed that he has a dossier on me. the asymmetry of your concern for such things reveals an amoral opportunism that is gross, frankly. But, it fits. I do recall why you have a predilection for SE Asia “if you know what i mean”.

#115 IHCTD9 on 03.16.22 at 2:06 pm

#98 Quintilian on 03.16.22 at 9:47 am
Not really sure what to think about Ronald Read.

People can do the right thing for the wrong reasons, as giving away 8 million because you hate your family, or because you love libraries and hospitals remains a question.

What we know for sure, is that he was loved by his stock broker and financial advisor.
____

Read was a Widower and never remarried. He gave 7 figures to both his kids. To me, Read’s MO is clear as day. He liked investing, liked the security of a big pile, and was a simple humble guy who had no use for what the money could bring him. I’d call him a typical New Englander if he hadn’t turned working at a gas station into 8 Mil. I don’t believe he had an advisor – he called his own shots.

https://en.wikipedia.org/wiki/Ronald_Read_(philanthropist)

#116 Ponzius Pilatus on 03.16.22 at 2:08 pm

#108 Dharma Bum on 03.16.22 at 11:56 am
#23 Bob in Hamilton

Did Ron enjoy any of that fortune? At all?
————————————————————————————————–

Truly wise people understand that the enjoyment is in the process.

https://qaspire.com/2010/06/30/enjoy-the-process/
——————-
Agree.
And driving a Rolls Royce adds to that enjoyment.

#117 Shawn on 03.16.22 at 2:33 pm

Comparisons to the S&P 500 are a bit unfair

#82 Mr Fox on 03.15.22 at 10:03 pm

Why are we always talking about how much the s&p 500 returned over a period of time when the BnD portfolio by being less riskier doesn’t have the same returns? Shouldn’t we talk about what the BnD portfolio returns were during the same period?

*************************
Agreed a B&D proponent should provide that as the historic return. But those figures are much harder to come by.

Actually I have them though back to 1926 and can give you the total for any time period since then you choose. A balanced American portfolio with S&P 500 and long bonds. I think I did 70/30 and also one with some cash. What time period would you like to see?

S&P 500 does show what a diversified all equity American investor might have done. Not totally relevant to Canada but still a reference point.

#118 Linda on 03.16.22 at 2:44 pm

#64 ‘Kommie’ – an excellent point about habit/lifestyle. When my partner got a big promotion so was earning more, the coworkers were astonished that we continued to be a single vehicle family. Their expectation is that the increased income would automatically translate into a second vehicle with all the expense that entailed. Whether said vehicle was needed didn’t enter into their expectations; what astounded them is that it wasn’t wanted:)

#119 Philco on 03.16.22 at 3:14 pm

#76 just say no on 03.15.22 at 9:17 pm
I am not impressed at all, you can not be happy and selfish at the same time, he could a paid a few homeless peoples rent or been there for someone? He may have or he may have not but in most case it is all selfish misery. He will not be remembered in a good way by many. I am just letting loose for all the suffering going on in these times. Shameful
—————————————–
That’s called socialism.
This country already has piles of back stops for people.
Venezuela tried it. Go to the Philippine’s there is no ever ending handouts there. Do you know what happens when you give someone everything for free? I do, my kid would be a lazy bum.
You want heat this winter I said….go cut fire wood.
Sorry but your simplistic approach need more approach.

#120 Guy in Calgary on 03.16.22 at 3:17 pm

There is nothing motivating or inspirational about saving your whole life but seemingly not doing very much with it. In fact, it is depressing.

#121 Mattl on 03.16.22 at 3:22 pm

#64 kommykim on 03.15.22 at 8:18 pm
RE: #50 Mattl on 03.15.22 at 7:23 pm
Cool story, and instructive, but not sure I understand the point of investing over 6 decades then leaving all that money to the Library. Interesting to be so dedicated to saving, but lack interest in spending.

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It’s essentially the same effect as when people live paycheque to paycheque. Habit. Once you get used to a certain lifestyle, and spending habits, it becomes almost effortless to carry on as you always have.
Imagine someone happy with earning $70K a year. Then they get a big promotion and end up earning $100K a year, but simply carry on with their old lifestyle and invest the extra $30K every year.

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TBH I can’t imagine that, there are so many things I want to do and experience that require money. Not high end clothes, or fancy meals. But I’d love to see the world, drive a supercar and maybe race on the weekends, run a 36′ aluminum with triple 350’s offshore for Tuna, etc, etc. I can’t imagine a life that involves pinching pennies and reading the WSJ every morning in a local coffee shop.

I will get a chance to do some of the things above but 8MM can finance some great life experiences.

#122 GOLDENBOY on 03.16.22 at 3:58 pm

How do we know if Ronald inherited most of it? Or won the lottery. Anything possible.

#123 Barry on 03.16.22 at 7:21 pm

Yup. TFSA is maxed every year and I just keep reinvesting the rising dividends. $205,000 and an income of $12,500 if I need it. Harper gave us a gift