If she can be a millionnaire, you certainly can be as well

Barrons, the famous investment magazine, recently featured Mrs Stephanie Mucha who donated $6 million. You may ask what’s special for her as there are so many philanthropists in the US who have donated billions of dollars. Six millions may not sound a lot for rich people, it is not a small amount for the majority of people who earn their income pay check by pay check. It is even unthinkable for this lady when you know how much money she earned during her life: she had never earned more than $23K per year during her entire life! What’s your reaction now? Unbelievable  to me when I first heard this but when I learnt how she made this much of money, everything became very reasonable and made a lot of sense. So what’s her money-making magic? Very simply. Just buy good quality dividend paying stocks and hold them forever! This is a sure stress-free way to make you very rich. The time will make the magic to work for you. The only thing you need is to be patient. One example for this lady was that she bought Medtronic (MDT) in 1964 with an initial cost of mere $255. In 2007, 43 years later, it has grown to $459K. You see, as soon as Mrs Mucha and her husband bought a stock, they did not care about what was happening in the world. Think about it, during their life time, they had experienced several earth-shaking events that could make people feel like end of world:

-          Oil shock in 1970s

-          Black Monday in 1987

-          Asian financial crisis in 1990s

-          Tech bubble in 2001/2002

-          Financial crisis in 2008/2009

 

I’m pretty sure that for majority of so-called investors, they would sell and run when such events occurred. But Mrs Mucha never bothered to care and they simply kept all the stocks and let the dividends reinvested. That’s why they ended up with so much money even though they had very little money to invest.

I hope this article can inspire you and change to some extent your approach how to invest your money!