Meet Larry, a Black local man. He’s a custodian at the elementary school and he earns $28K a year. He lives in a small 1 bedroom apartment in the South Bronx. His family loves him and he gets invited to all of the cookouts and dinners. He tries to help his parents when he can, but he can’t really give his extended family money. He helps cousins move, he helps siblings paint, he even takes cousins and nephews to high school basketball games just to get them out of the house. As soon as he leaves a dinner, his family talks about him behind his back, saying he will never get married.
Larry is 27 years old, he knew by the age of 25 most of his friends he went to school with were illegally making money and dying or going to jail. He wanted more and started learning about investments. He went to the library every chance he got. He’s favorite show was Suze Orman on public TV. Then he got a 2nd job to start investing by working on Friday and Saturday nights earning $150 parking cars as a Valet. He vowed to not touch the money and never told anyone about his plan to invest this 2nd income.
He first put the money in a mutual fund with Fidelity Investments. Then he began to read books by Warren Buffett. He figured since Mr Buffett was the greatest investor, maybe he could learn something. He did learn and start picking his own stocks.
He changed his accounts at Fidelity from mutual funds to a self-managed brokerage account and averaged 35% profits per year. He continued to add the extra $150 a week to the account and after 10 years of staying consistent with his plan, he has a total capital value of $443,593. He kept it to himself for 10 years, then it was time to go public by giving his parents $10,000 cash for Christmas. Crickets
