In a remarkable tale of frugality and investment savvy, Ronald Read, a humble janitor from Vermont, amassed a fortune of nearly $8 million over his lifetime, surprising many after his death in 2014. His story serves as an inspiring example of how disciplined saving and prudent investing can lead to significant wealth, regardless of one’s income level.
Early Life and Career
Born on October 23, 1921, in Dummerston, Vermont, Read grew up during the Great Depression in an impoverished farming household. He was the first in his family to graduate from high school and enlisted in the U.S. Army during World War II, serving as a military policeman in North Africa and Italy before returning home in 1945[1][7].
After the war, Read worked for 25 years at Haviland’s Service Station as a gas station attendant and mechanic. Following his retirement, he took a part-time job as a janitor at J.C. Penney, where he worked for another 17 years until 1997[2][3][4]. Throughout his working life, Read earned modest wages but lived a life characterized by extreme frugality.
The Secret to His Wealth
Despite his low income, Read managed to save diligently. He was known for his thriftiness; he often patched his clothes rather than buying new ones and drove an old Toyota Yaris. Friends and neighbors had no idea of his financial success until after his passing[2][4].
Read’s wealth was primarily built through smart investments. He was an avid reader of financial publications like The Wall Street Journal and spent considerable time studying stock market reports at the local library. His investment strategy focused on blue-chip stocks—well-established companies with a history of reliable earnings—and dividend-paying stocks[3][5]. By diversifying his portfolio across various sectors while avoiding industries he did not understand, Read demonstrated patience and discipline that paid off handsomely over time.
At the time of his death, he owned shares in at least 95 different companies, including Procter & Gamble, General Electric, and Johnson & Johnson[4][5]. His approach allowed him to generate substantial income from dividends, reportedly earning over $20,000 monthly before taxes from these investments[4].
Legacy of Generosity
When Ronald Read passed away at the age of 92 on June 2, 2014, he left behind an estate valued at nearly $8 million. In accordance with his wishes, he bequeathed $4.8 million to Brattleboro Memorial Hospital and $1.2 million to Brooks Memorial Library—both institutions received their largest individual donations ever from him[2][7]. Additionally, he allocated $2 million to family members and caregivers.
Read’s legacy extends beyond mere financial contributions; it serves as a powerful reminder that wealth is not solely determined by income but by how one manages their resources. His life exemplifies the importance of saving more than spending, investing wisely, and maintaining patience in wealth accumulation.
Lessons from Ronald Read’s Life
The story of Ronald Read imparts several key financial lessons:
– Save More Than You Spend: Living below one’s means is crucial for building wealth.
– Invest Wisely: Investing is not just for the wealthy; anyone can learn to invest successfully with dedication and research.
– Be Patient: Wealth accumulation takes time; long-term investments often yield the best results.
Ronald Read’s journey from a low-wage worker to a millionaire underscores the potential for anyone to achieve financial success through discipline and smart choices. His life continues to inspire those seeking financial independence.
Read More
[1] https://www.pedrofrias.co/post/the-8-million-janitor-how-ronald-read-secretly-built-a-fortune
[2] https://www.csmonitor.com/USA/USA-Update/2015/0206/How-one-retired-janitor-became-a-multi-millionaire
[3] https://thefinanceteacher.com/the-story-of-the-janitor-that-became-a-millionaire/
[4] https://www.spokanejournal.com/articles/4168-frugal-janitor-s-life-provides-good-financial-lessons
[5] https://www.bluetreesavings.com/post/the-millionaire-janitor
[6] https://www.atamaniuk.com/obituaries/Ronald-J-Read?obId=2112000
[7] https://en.wikipedia.org/wiki/Ronald_Read_(philanthropist)
[8] https://www.linkedin.com/posts/drewbreneman_ronald-read-was-a-janitor-and-gas-station-activity-7273758750316916736-bAL0
[9] https://thethinkabout.com/2023/09/04/ronald-read-the-millionaire-janitor/