Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 16, 2021
How a Vermont Janitor Became a Millionaire

How a Vermont Janitor Became a Millionaire

Ronald Read spent the better part of his life working as a mechanic and a part-time janitor at J.C. Penney—a far cry from the office jobs that normally make people millionaires over time.

Yet, following his death a few years ago, his estate has made its first distributions of $4.8 million and $1.2 million to the Brattleboro Memorial Hospital and the Brooks Library, respectively. Ronald Read, an everyday service worker whose khaki denim jacket (that he wore regularly) was barely held together by a safety pin, had amassed an estate of over $8 million.

How did he do it?

Saving was a big part of his success. Mr. Read wasn’t a flashy guy—he often wore the same flannel shirt and didn’t care much for material possessions. He packed his own lunch to work every day and pinched pennies wherever he could. Mr. Read wouldn’t even park close to his attorney’s office, because it meant having to pay for parking!

So that’s tip #1: save, save, and save some more.

Indeed, Mr. Read’s frugality made a world of difference. But it was really his investment strategy that made the biggest difference: he was a big fan of dividend-producing stocks. When Mr. Read’s attorney went to retrieve his estate documents from his safety deposit box, she found a “wealth” of stock certificates—worth over $8 million. When it was all said-and-done, Ronald Read had built a mini-empire with a safety deposit box and an investment portfolio heavy on dividend-paying stocks.

 

 

A Quick Note on Some of the Benefits of Dividend-Paying Stocks

In addition to producing a source of income through cash payments, dividend-paying stocks have also demonstrated the ability to produce fairly robust long-term growth rates.

Federated Investors conducted a research study using data from Morningstar, and found that from July 1, 1996 – June 30, 2013, a high dividend domestic equity strategy generated an average annualized total return of 10%, which is 278 basis points higher than the 7.22% annualized return realized by the S&P 500 over the same time frame.

One of the cited reasons for outperformance was that since dividend-paying stocks pay a sizable portion of their returns in cash, they may help cushion a portfolio’s downside when the broader market is posting losses.

Dividend stocks, therefore, offer the investor three potential benefits:

  • Income
  • Growth
  • The possibility of reducing the impact of market declines

All pretty great benefits, in my opinion!

Dividends Aren’t the Only Solution

In reality, Mr. Read could have been probably attained the same fortune had he created a diversified portfolio of quality stocks – they didn’t all have to necessarily be dividend payers.

If I could adjust Mr. Read’s strategy into three tips for investing success, here’s what I think it would look like:

  1. Spend as little as possible and avoid debt of all types
  2. Save as much as possible
  3. Invest in a diversified portfolio of stocks over the long-term

In my view, investing success does not have to be much more complicated than that.

So, the natural next question is: how do you build a diversified portfolio (#3 above) that withstands the test of time?

Tickeron has a solution.

If the millionaire janitor has inspired you to save and invest more, you can use tools on tickeron.com to help you push forward on the right foot. The best way to get started is to use Tickeron’s Artificial Intelligence (at no charge) to evaluate your current investment portfolio. The A.I. will tell you how well diversified your portfolio is now, and what it thinks you should do to improve your overall diversification. That's your starting point. 

From there, the A.I. can help you stay diversified over time by keeping an eye on the portfolio and alerting you when it's time for changes. With savings habits like Mr. Read's and a well-diversified portfolio, I think anyone can achieve investment success. 

Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.