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This is what people mean when they say it only takes one smart move in life to get rich. Did you know that  a single share of Coke with dividends reinvested is worth $10,000,000?

COKE(http://www.netnethunter.com/)

In the 1920’s and 1930’s, a banker named Pat Munroe in the small town of Quincy, Florida noticed that even during the depths of the Great Depression, otherwise poor people would spend their last nickel to buy a  Coca-Cola.   Pat encouraged everyone “he knew” to buy an ownership stake in the firm.

Quincy became the richest town per capita in the entire United States at the time. At least 67 “Coca-Cola millionaires” amassed significant fortunes before passing these on to their children and grandchildren, in some cases through outright gifts and in other cases through the use of trust funds.   A single share with dividends reinvested is worth $10,000,000 in 2013.  It would be gushing $270,000 in pre-tax cash dividends to the owner.

They were successful because:

  • They bought to their interest
  • The profits and dividends went up each year, but they were willing to weather the day to day fluctuation
  • They learned the importance of compounding interest
  • They committed to long term investing and did not sell the stock
  • There was no change in the competitive position of the underlying business
  • The shares were bought when they were attractive relative to other opportunities

I understand that it is extremely difficult to foresee a situation in which 50+ years from now, a small investment in a company is worth exponentially more than the price paid for those shares.  I also understand that in 1920 many people were unable or not allowed to buy stock, but that’s not true in 2015.

  • Take advantage of the opportunity to teach young people to build wealth!
  • Its been said that once you gain wealth the right way, you never have to do it, again!
  • Giving a young person a JackieTrust falls into the category of one-smart-move!

 

FYI:

  • At the time a share was about $16.00+/-
  • $16.00 in 1920 was worth: $198.78 in 2015