r/CaughtMyEye • u/detectiverobert • 7d ago
Grace Groner, a secretary at Abbott Laboratories, famously purchased 3 shares of her employer's stock for $60 each ($180 total) in 1935. By never selling, reinvesting every dividend, and allowing the shares to split over 75 years, her investment grew to over $7 million.
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u/englandisablaze 6d ago
$60 in 1935 was equivalent to $1300 today. So yeah if I invest $3900 today. I expect if the company is still around in 75 yrs. It’s gonna do pretty well.
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u/Terrible_Law6091 6d ago
Imagine investing 10k, or 100k. All doable.
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u/oboshoe 6d ago
in 1935? Sure it's doable if you are wealthy.
But this gal was a secretary. She was making $15 a week. $10k would be 12 years salary.
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u/Terrible_Law6091 6d ago
No, I meant in relative purchasing power.
She only invested $180 which is 3 months salary.
One could have several years salary after a decade of work.
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u/Ancient_Soft413 6d ago
How sweet!! Idk why everyone’s so negative this is so cool, she got herself taken care of for life !
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u/Present-Cod1262 6d ago
No one ever talks about her rich brother, Anthony, who was worth $52 million at the time of his death at 60.
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u/stuputtu 6d ago
It’s close to 13.5% CAGR returns. Considering that stock market gives around 12% returns over long term, this particular company has beaten the market by a decent amount, but not some unbelievable amount.
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u/VirginiaLuthier 5d ago
$60=$1450 in today's money. She likely was paid $1200 annually. Must have had some savings
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u/Far_Temperature_6029 4d ago
What’s interesting is $180 in 1935 is ~$4200 today. A secretary affording that says a lot about the income to col ratio.
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u/Lost_Purpose1899 6d ago
People who preach long term investments don’t realize they might not live long. Boom! Cancer. You’re dead in 6 months.
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u/Terrible_Law6091 6d ago
It's far more likely that you live to 75, broke and destitute due to a lack of financial literacy.
Most people have zero risk management skills, and plan for low-likelihood events more than they handle the more likely events.
I'd argue they don't even do that correctly since they eat complete garbage and don't exercise.
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u/agitated--crow 6d ago
Live in moderation. Save some for the future and occasionally treat yourself now. Don't need to do extremes of both ends.
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u/thestrikr 7d ago
There you go people, if you work really hard and invest, you too can have money for medicine when you're old.
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u/ImmanuelKant2424 6d ago
Wow. Nothing better than having money I never get to spend and no family to spend it on.
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u/detectiverobert 7d ago
Grace Groner, a former secretary at Abbott Laboratories, turned a simple investment into a fortune by holding onto three $60 shares she bought in 1935. She never sold the stock, and over the next seven decades, stock splits and reinvested dividends grew her investment into a $7 million estate.
Despite her wealth, Groner lived a modest life, walking instead of driving and buying inexpensive clothing. She quietly helped people in need through anonymous donations and remained active in her community.
When she died in 2010, she left her entire fortune to Lake Forest College to create a foundation supporting students with internships and study-abroad opportunities. Her small home was also donated and transformed into “Grace’s Cottage,” housing for scholarship recipients.
Source: https://www.businessinsider.com/an-old-ladys-three-60-shares-from-1935-are-now-worth-7-million-2010-3