Dear Friends,
We have had a wild ride in the stock market these last couple of weeks. There are a few things that you should be watching that will have a huge impact on the markets moving forward.
The Federal Reserve will have their meeting next week to decide if we should raise, cut, or pause rates. This is very important because if they raise rates this will make interest/mortgage rates go up which will cause the stock market and real estate market to go down. If they pause or cut rates, this will be seen as a win for investors and the markets will go up.
However, you have to remember that the only way the Fed can fight inflation is by rasing rates. When you raise rates, the economy will slow down which will ultimately lower inflation.
BUT, if you raise rates to fast then the economy will go into a recession.
Make sure you monitor this.
A 92 year old man secretly amassed a $9 million dollar fortune by investing in the stock market.
The craziest part?
He was a janitor for 27 years. How on earth did a janitor become a Multi-Millionaire? Keep reading to hear about his story and his investment strategies.
Ronald Read was born in 1921 in Vermont, and he was determined to be the first person in his family to graduate high school. He walked and hitchhiked 10 miles everyday to school until he graduated. (I cannot imagine doing this, so I tip my cap to him. haha)
Upon graduation, he joined the United States Army to serve our country during World War II.
After returning from the war in 1945, he worked almost 25 years at Haviland's service station. Mr. Read was a very loyal employee to the company. He decided that he didn’t like working at the service station, and he finally quit his job.
Ronald began working as a janitor for Jcpenny. He did this for the rest of his career which roughly was another 20 years.
The funny part?
He was a millionaire almost the entire time that he worked as a Janitor.
His friends and family were shocked when they found out he was worth a staggering $9 Million Dollars.
How did he amass this great fortune on such a low salary?
He kept a frugal lifestyle while investing the rest of the money. However, it was his investment strategy that was smart
He understood a thing or two about investing, but he didn’t make it complex.Remember, simplicity is the most complex when it comes to investing.
He was a avid reader of The Wallstreet Journal, but he never let the headlines persuade him to make emotional decisions.
Remember, investing is 90% emotional. How many times have the media headlines made you think about make emotional decisions like selling your stocks?
He focused on buying quality companies that he knew and understood. This is a key component when you buy stocks for the long term.
For example, if you go to starbucks every single morning, you should buy Starbucks stock. When you do this, you become an owner of the company, you are helping your own cause each morning, and you would know if something dramatic changed about the company.
He followed the timeless advice of Warren Buffett: “If they buy good companies, buy them over time, they're going to do fine years from now."
Lastly, he invested in companies that he held for long term. Remember what Warren Buffett said about time:
What did he do with all his money when he died?
Upon his death, he donated $2 million to his stepchildren and friends, $1.2 million to local library Library and $4.8 million to his local Hospital.
Let me know your thoughts in the comments section below!
If you have any questions, feedback, or just wanna say hey, email me at mattallenletter@gmail.com
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Stay Gritty,
Matt Allen
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