Last week I was listening to a story on one of my favorite podcasts.
The host of the show was telling a story of how his father bought $50 worth of stock for him when he was 14, roughly 30 to 35 years ago.
What’s fascinating about this story is that he hadn’t known his father had purchased this stock until recently. His older brother was going through some old documents, and stumbled upon a brokerage statement that named him the beneficiary of these shares.
When he read the statement, he saw that the cost basis, which is the amount that was initially invested in the stock was $50. He was blown away at the balance of the account after all these years, which was $7000!
The name of the company his father invested in is Exxon Mobil (NYSE: XOM).
The return on that $50 is 140 times his father’s initial investment.
This is absolutely phenomenal!
Investing is quite simple in this regard…
Find a great company to invest in, and never sell the stock over the course of decades.
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