Never Too Late To Invest
It’s never too late to invest…even at the age of 50.
That’s how late Anne Scheiber started investing in the U.S. Yet she managed to turn a tiny $5,000 into a whopping $22 million.
Anne didn’t grow up rich. She lived in poverty.
Her father died when she was very young, and so she had very little financial support during her teens.
That didn’t stop her from working hard and getting a job at the Internal Revenue Service (IRS) – the USA tax department.
But it wasn’t smooth sailing for her.
She was discriminated against in her role and never got promoted during her entire 23-year career.
She never made more than US$3,150 a year.
When she retired in 1944 at the age of 50, she had only US$5,000 to her name.
Most people in her shoes would have given up getting rich.
But Anne was smart enough to use her skills as an IRS auditor. She discovered that one of the ways people grew their wealth was by investing in stocks.
So at the age of 51, she put her auditing skills to work, started reading companies’ financial statements and started investing.
She continued to invest for the next 50 years, until her death in 1995.
By then, Anne had US$22 million under her name.
So how did she turn US$5,000 into $22 million?
One stock she bought was Schering-Plough. At the time of her death in 1995, the value of her stock in Schering-Plough was US$7.5 million.
That’s a return on investment of 15.9% year-on-year!
The other stock she owned was Coca-Cola. The price of the shares grew by 26X from US$28,000 to US$720,000 between 1980 and 1995. That’s a fantastic return of 24% year-on-year.
Do you think Anne had a secret formula to pick her stocks?
She didn’t…in fact, her strategy was simple and it may look “boring” to some investors today.
Here are five lessons what you can take away from her success:
1. Buy companies that you understand.
Even when Anne’s stocks dropped by 50% she didn’t panic. She understood the company and its financials. This helped her stay calm as she was confident that the company will do well in the long term
2. You don’t have to start with huge capital.
Anne did not come from a rich family or a well-paying job; she started with only US$5,000 and was able to grow this to US$22 million.
Armed with a sound investing process, she still managed to achieve 4,400X her capital over 50 years.
3. Reinvest dividends.
Anne understood the power of compounding. So she put those dividends back into her investments and grew her returns exponentially
4. Be patient.
Anne was a buy-and-hold type of investor. She never looked for a quick buck by trading in and out of positions.
She believed that her carefully chosen companies would grow in value over time
5. It’s never too late to start….even at age 51!
These lessons are simple enough to understand but difficult for a lot of investors to follow.
However, these are simple principals that could make you rich.
Another thing that Anne did, according to the Times was that “She did nothing but study the market.”
There’s just one problem.
This process requires you to spend countless hours digging through financial reports.
You’ll need even more time to study the fast-moving trends within dozens of industries.
Do you have time for that?
You’re probably very busy working and taking care of your family. Many of you likely can’t even find the time to pursue your interests, let alone spending precious hours studying the market.
But this isn’t your fault. After all, we all know Singapore has a competitive society and if “you snooze…you lose.”
Here’s the thing…many investors still manage to generate market-beating returns without spending more time studying the market.
Wouldn’t it be nice to skip to the finish line – and get access to a list of carefully selected stocks that can potentially drive wealth to you and your loved ones over the long term?