This Week at MANIFEST (1/24/2020)
“Life is like a snowball, all you need is wet snow and a really long hill.” — Warren Buffett
This past week, we lost a very special charter subscriber to Manifest Investing. My Father. I think his ID number was single digits. He was also a charter member of our Chicago-based investment club, evolved into an investing warrior … and was quite simply, my favorite EAGLE.
A couple of weeks ago I huddled with my father over his monthly ritual of opening his E*Trade envelope. A careful slice of the envelope (he saved every single one of them, every one) and I heard him say some of my favorite words, “My Colgate-Palmolive stock is worth how much? That can’t be right.” A $2000 investment in CL was now worth $28,000. This was typical of many holdings. In fact, the gains in Gentex, Pepsi, and Vanguard Technology (VGT) were actually much bigger.
His experience with General Electric was “different.” He shared his disappointment with GE often.
But he fixated on the steady delivery of Colgate. As the accompanying image shows, the company occupied Mom and Dad’s Christmas tree. We first talked about this long ago, see: When Monsters Are Created. It’s a story about consumer and stakeholder loyalty. This past weekend, I noticed that all of the squeezed toothpaste tubes on the bathroom sinks (including those toted by his grandchildren) were Colgate. He left a mark.
The image of Mom and Dad was captured at an Investor Fair in Springfield, Illinois. Long story short, the Biomet investor relations representative had told Mom and Dad over breakfast that $2000 invested in Biomet circa 1980 was worth $1,000,000 in the late 1990s. It’s a fact. (For more, see Raise A Cup: Million Dollar Moment — April 2012) It’s also potential freedom. Magic and miracles happen when given a chance.
Dad was a magnificently complicated man. He often chided me for complaining about bears and investing. “Not all bears are bad. I give one to your mother every Valentine’s Day. Besides, we loaded up on some pretty good stocks in March 2009 thanks to one of your bears.” Much wisdom.
And, in closing, one of the simplest and 100% effective lessons ever: Lessons From Fathers & Simple Things, Solid Results (Some might note that this may have been the earliest reference to Five Below)
Bottom Line: Dad took his investment club experience back in the 1990s and deployed it with an IRA that was invested in a CD that also happened to be charging $75/year for “custodial service.” We recently calculated that it would have worth approximately $20,000 if left in that paltry “risk free” situation. We moved it to E*Trade and he carefully selected companies like Gentex, Johnson & Johnson, AFLAC, Walgreen/CVS and leaned heavily on Vanguard Technology (VGT) despite his age. His balance grew to be a lot more than $20,000. When we talked about “risk”, I observed that “Dad, you’ve NEVER, EVER, acted your age.” He didn’t think long term investing included the risk they talk about on television and teach in colleges and business schools. He was right.
For so many of the deepest lessons and love imaginable, THANK YOU, DAD.
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