Secrets Of The Janitor Who Became A Millionaire

The Millionaire Janitor

I read the story of Ronald Read just recently in ‘The Psychology of Money’ by Morgan Housel. His story can be viewed as a shining example of the power of determination, frugality, and long-term investing.  This is the story of the janitor who became a millionaire.

Ronald Read was an unassuming janitor from Vermont, USA, and he lived a life of modesty and simplicity, spending his days cleaning up after others. But behind his unremarkable exterior lay a secret fortune that would only be discovered after he died in 2014. 

From Humble Beginnings

Ronald was born in 1921 in a small town in Vermont. He experienced the hardships and challenges that came with growing up during the Great Depression. Despite these circumstances, he was known by those close to him for his unwavering work ethic.

The Path to Accumulating Wealth

While Ronald Read’s janitorial job at a local J.C. Penney department store might have seemed mundane, he had a secret passion for investing. Every day, during his lunch breaks, he would spend hours at the local library, studying financial publications and stock market reports. 

Armed with knowledge and a keen eye for spotting undervalued stocks, Ronald embarked on a journey that would eventually lead him to accumulate an impressive fortune.

Investing Wisely

His approach to investing was characterized by patience and prudence. He focused on long-term investments in blue-chip companies (these are large popular and successful companies) and diversified his holdings by having shares in many different types of companies. His portfolio consisted of well-known companies like Procter & Gamble, General Electric, and Johnson & Johnson. He also had a knack for identifying undervalued stocks, which proved to be incredibly lucrative over time.

Frugal Living

What made Ronald’s story even more remarkable was his frugal lifestyle. Despite his wealth, he continued to live modestly, driving a secondhand Toyota Yaris and wearing secondhand clothing. His neighbours and friends recounted his lack of materialism and his commitment to simplicity. It was this unassuming nature that allowed him to fly under the radar for so long. He was the classic ‘millionaire next door’ that I had read about who doesn’t appear to be rich but consistently accumulates wealth through a less-than-luxurious lifestyle.

The Astonishing Discovery

When Ronald Read passed away in 2014 at the age of 92, his friends and family were shocked to learn the true extent of his wealth. It was revealed that he had amassed an astonishing fortune of over $8 million. This sum included investments in stocks and bonds, as well as real estate holdings.

Legacy and Inspiration

Ronald Read’s story suddenly captured the attention of many, and his legacy continues to inspire others. Despite facing numerous challenges and working in an ordinary job, he demonstrated that financial success is attainable for anyone willing to invest wisely and live below their means. His story challenges the notion that only those in high-paying jobs or with extensive education can accumulate wealth.

Lessons from Ronald Read

The Power of Long-Term Investing 

Ronald’s patient approach to investing paid off, emphasizing the importance of adopting a long-term perspective when it comes to building wealth.

Frugality as a Virtue

 His commitment to a frugal lifestyle was a driving force behind his ability to save and invest. Living below your means can be a powerful tool in accumulating wealth.

Knowledge Is Key

Despite his modest education, Ronald spent countless hours educating himself about financial markets. This highlights the importance of continuous learning and being proactive in understanding investment opportunities. We can all follow this example. The best place to start is reading. I have another article reviewing the best personal finance books to read. And another that is more recent and focused on books that people in their 20s should read. Check them out.

Take Aways

Through Ronald Read’s story, we can all learn valuable lessons about financial management and the potential for personal growth and wealth accumulation. It teaches us that anyone, regardless of their background or occupation, can achieve financial success through discipline, knowledge, and long-term planning.

This story challenges our conventional ideas of wealth and happiness. It prompts us to question our own desires for material possessions and reevaluate our priorities. Ronald Read found contentment in a simple life and derived joy from the process of investing wisely rather than from excessive consumption.

Perhaps the most significant takeaway from Ronald Read’s journey is the importance of embracing a long-term mindset. In a world that often glorifies get-rich-quick schemes and instant gratification, Ronald’s story serves as a powerful reminder that true wealth is built gradually over time. 

Financial success is within reach for anyone who is willing to invest wisely, live frugally, and cultivate a long-term perspective.