Today I was playing around on one of my favorite online destinations, Stockchoker.com. I love to see what investments would be worth today if made during a given date in the past.
I don’t know why, but I looked up Home Depot and what a $5000 investment made in 1981 would have been worth today, 37 years later. The number was a staggering $44,456,000 – that’s right, almost 45 million when you reinvested the dividends.
That got me to thinking about what it means to invest in a company. When you buy shares of a stock of any company, you become a partner. A freakin’ partner! Think about it. How beautiful is it to become a partner without paying lawyer fees, hiring an accountant, filing quarterly taxes, or dealing with employees and customers? All you have to do is buy shares and wait.
I don’t know who, but someone out there had the presence of mind to buy shares in Home Depot back then and hold on to them. Think about this for a moment. 10 years after becoming a partner in Home Depot, which would have been 1991, would have allowed you to potentially retire! That will never happen as an employee.
My daughter is 17. I will continue to preach to her to never, ever be an employee. Being an employee is the worst thing to be. You want to be an owner or a partner! And the first step to doing that, my friends, is becoming invested.