What's up everyone? Ross here from Warrior Trading. So in this episode, I'm going to share with you the story of Mr. Reed, the janitor from Vermont who amassed an 8 million estate. By the time he passed away at the age of 92, he was investing in the market, long term dividend, paying stocks.

What was his portfolio? How did he do it? I'm going to share that with you right here today. Make sure you hit the thumbs up. I hope you enjoyed this video. Let's go ahead and dive right in.

So here it is. The articles: When Mr. Reed passed away at the age of 92, the frugal man who left an 8 million dollar estate, the multi-millionaire next door. It was on the news.

it was on the Wall Street Journal. I mean, it was. It was really incredible. This is a a Wall Street Journal article about Mr.

Reed. Uh, written in early 2015. So this is an incredible story. It's so inspirational.

Obviously, his results are not typical and neither are mine. But there's got to be some lessons that we can learn from this story. so let's see what we can dissect. So how did he do it? How does a janitor amass an eight million dollar fortune? Well, uh, before he was a janitor, he worked at the service station here.

This gas station, Uh, just in Brattleboro, on the corner of Green Street and High Street where Western Avenue meets which goes up to I-91 The Interstate which goes down to New Haven, Connecticut, or up to um, up to Canada. So Mr. Reed from a very early age, and this is what was discovered at the time of his death, was living within his means number one and was saving number two. But he wasn't just putting that money into a savings account, he was buying shares of publicly traded companies.

He was buying stock. And he was particularly interested in purchasing dividend-paying stock from companies that he knew that he was familiar with. And so, I'm going to go full screen here. and we're going to look at some of the charts of some of the stocks that he was invested in at the time of his uh, passing.

And and by the way, like I said, lived completely within his means. That's Mr. Reed right there on the google street view from 2012. that doesn't look like the outfit of someone who's a multi-millionaire It doesn't look like the car.

Look at this car. It's got dents in the back of it. It's a two-door It probably doesn't even have a radio. That's not the car that a multi-millionaire drives, right? That's not the the house in the garage for multi-millionaire I mean, this is.

this was a, you know, a neighborhood of a nice neighborhood. But nothing. Nothing especially fancy by any means. You know, a nice little small town Vermont neighborhood.

I don't know what his house would have cost. I think my mom's house cost her ten thousand dollars. Uh, when her her mother bought it in like 1968 or 69. So you know.

And I think he lived in the house for a long time. So the moral of the story, high high level is this is a man who lived within his means and believed a penny saved is a dollar earned. He would go around and if a tree had fallen down or a branch had fallen down in the road, he would take that tree branch. He'd put it in the back of his car and he would bring it home.

And he would save that firewood to burn in his wood stove. That winter, he wore clothes that were patched. You know, why throw away a good jacket if it's just got a little rip in it? That's what duct tape is for after all. And so he.

He was frugal. He lived. I mean, not just within his means. He probably was saving the majority of his paycheck.

Uh, each pay, period. And you know, if we look at, uh, just one of the shares. Uh, he. So he had, uh, Procter and Gamble was one of the, um, let's see what else.

So he had Wells Fargo. So look at Wells Fargo. Uh, Wfc. So Wells Fargo? Uh, this one at 2014 was right here.

About 42 dollars. It's about 50 right now. Wells Fargo's had some ups and downs over the years, but who knows how long he had been holding it for. You know what I mean.

Like, this is an incredible move from the late 70s and 80s. This Mr. Reed was someone who was investing for his entire life. Imagine a lifetime of investing and let's pull out Um, the the Gov the government's compound interest talent calculator here.

Let's say initial investment 150 bucks. Which you know, I mean that would have been a lot of money in 1950, But let's just say monthly contribution 150. That might even be too high, but you know you average it over the course. Let's say it's 150 a month was the average.

Over the course of 70 years interest rate, he was picking good stocks. Let's put it at eight percent. Now let's see what this will calculate out to 4.9 million. All right, that's 150 a month with 150 initial investment.

So let's bump this up to um, nine percent and let's calculate it again. So 8.8.3 million dollars over the course of 70 years from the age of 22 to the age of 92.. Now imagine for just a second at the time of his passing, eight million dollars? that was in 2014.. What if the Broward Library and the Broward Hospital got a good financial advisor and they kept that money invested in dividend-paying stocks for the last eight years? Well we could go to the compound interest count calculator here and go ahead and change that to 78.

it goes from 8.3 to 16.7 What if his his kids that he gave that money to invest that money for another 20 years. So go 70 plus uh, nine plus 20 is 90.. Now of course they're not going to be maybe contributing in the same way. And you know they're only taking two million because he left six to the hospital in the library.

But imagine if the whole 8 million kept growing. This is the power of compound interest, the way it just starts really ripping as you get further along in growth. Now initially, the first five years, first five years, not a lot to show for it. Eleven thousand dollars The first ten years? Well probably still not a lot to show.

27 000. But then you start. You'll start seeing it increase. Now you're at 20 years now, you're going up to 92 000 and this is where you start to pull away your contributions versus the growth.

So when we were at 70 years, the total contributions, the lifetime contributions were 126 thousand dollars. Those were the total contributions and the growth 8.3 million. Now again, this is speculative because I don't know how much he was putting away, but I know he was. I know he was saving.

And so let's look at some of the companies again. So we've got uh, Wells Fargo here. We've got Procter and Gamble, Pg, and one of the things you can do when you buy dividend paying stock is you can choose to either have the dividend uh P sent to you as a check or you can take that money and buy more shares of the company. So this is something my my grandmother.

She didn't do to do this like Mr. Reed, but she would just here and there she would get a an inkling to buy some shares of a stock should buy like 10 shares of American Electric Power or whatever. And when my dad and my uncle were cleaning out her house when she passed away which was in the 90s they were finding like a stock certificate jammed under, you know, in a drawer or under a pile of papers and it was like you know in those days it's like oh my god this is totally disorganized. So stock certificate here.

another one here. Unfortunately none for like Berkshire Hathaway but for American Electric Power she had this and um I think she had. I don't remember how many shares she had but this was in 93. I think that she passed away.

it was at 33 dollars. it's gone up 300 now. Yeah, it's taken a long time to get there. It's a utility, but it pays a dividend and you know, initial position you keep reinvesting, reinvesting, reinvesting.

You don't have to do anything, you set it and you forget it. and next thing you know you know 20 years go by and all of a sudden you've got something to work with now. Uh, he also had shares. uh of let's see what else do we have? Johnson Johnson and we can look at Johnson Johnson in 2014 Right here it was at about a hundred.

Now it's at 180. you can look at um, let's see you've got Cvs. Cbs was one of the ones that he had shares of. Cvs from 2014 63 went up to 110, came back down, came back up.

Sjm. Um, the um. The Jealous Smuckers Jelly Peanut Butter Jelly Company 2014. You know, I mean again, these are stocks that just kept growing.

And so what he did was he positioned himself by saving so much of his paycheck early on to benefit from compound interest. And as these companies grew, these were, you know, big big household names. As they continued to grow, he was able to ride that that wave that rising tide that lifts all ships And if his money had continued to be invested and maybe it some of it has, who knows what it could be at today. So it's really a Jp Morgan that was another one that he had shares of.

It's such an incredible story and I think that for anyone, it's a reminder of the importance of starting soon. Now maybe you say? Well, geez, I'm already 40, 50 years old. I don't have 70 years. Maybe you don't but maybe this is a gift that you can give to someone in the future.

Maybe for uh, one of your children, maybe grandchildren? Maybe the local library? The local hospital? I mean, it's you know. Or maybe you just want to spend your money because hey, you know life is short. Well, not for Mr. Reed.

92 is pretty good. but you know life. You know my life, life can be short and you got to enjoy life. And I think that Mr.

Reed and my mom have something in common. Uh, which is living well, well within their means. Um, and it can be can be difficult to be around someone that lives so within their means because you think, geez, louise, you couldn't We're on a 16-hour flight, you couldn't spring for business class. You know it's like, uh, really, I'm six foot two.

I don't want to be cramped in a seat and anyways, but you know, I mean these are my own experiences growing up with. um, you know, a mom that was a little bit like Mr. Reed and you know where she got it from. She got it from her grandfather who lost everything working on the stock exchange in 1929, Great Depression, the stock market crash he was working on for the exchange the day the market crashed and he lost everything on that day.

and he rebuilt and lived a fine life. But teach his children and his grandchildren that a penny saved is a dollar earned and don't refuse it. Reuse it. Don't throw anything away, right? And so there.

There's obviously a spectrum and some people due to uh, due to life events you know, get pushed one way or the other. and I'm so I'm gonna be so interested to see how uh, children that have lived through covet this pandemic. Our long-term effect in the way they spend money, the way they save, the way they hoard paper towels, toilet paper supplies. You know, living through something like that, it's got to have a profound effect.

and going living through the Great Depression. I think that absolutely had a profound effect for a lot of, uh, a lot of children, young adults, uh, Mr. Reed included, you know, so it's I don't know if it's a happy way to live, if you're really frugal, and if you're always living in in fear of, you know, the next depression coming. but it's certainly a an inspiring story of someone who probably should never have been able to amass an 8 million dollar fortune but was able to do it anyways.

The power of the market and the power of long-term investing. so it's certainly not day trading. You know it's not. I don't.

You know, it's not that, but it's uh, it's pretty cool so I don't know. I just wanted to share it with you. I I thought it was a nice, exciting kind of inspiring story for those that maybe hadn't heard it and I have my own take on it. Growing up.

You know, with Mr. Reed down the street, and growing up? you know, seeing the way my mom, uh, her relationship with money and so I don't know what is healthy, I don't know what's exactly right. This doesn't seem, maybe quite on the, uh, in the middle of being moderate. It seems pretty extreme to live as frugally as he did, but you know, if he was happy, he was happy so.

but I don't even know if he was happy. It's hard to say. Anyways, an interesting story. I hope you've learned some, taking some lessons away from it and I'll see you right here for the Morning show where I'll be live.

trading day trading, fast-moving markets. If Mr. Reed could, could see them Now from from a phone you can access the market. It's really incredible.

There's a lot of potential at our fingertips, but just as easily as money can be made, money can be lost. so educate yourself, be conservative, take it slow, and keep studying. All right. See you guys for the next episode.

The best way to keep studying is check out this video right here on the things I wish I had known before I started trading. I made so many rookie mistakes and I talked about them right here. So check out that video and as always, join us for the Morning Show Live right here on Youtube between 8 45 and 9 30 Monday through Friday.