Retirement Plan with a Single Stock
Sometimes diversification is not a good idea.
Yes, I said it and I’m a sure a few CPAs reading this just fainted. But it’s true nonetheless.
When you find a single stock that’s truly special, you can in fact retire on that one stock.
As Warren Buffett points out…
And if you look at the world’s 20 richest people… every one of them made a fortune not by diversifying into hundreds of stocks…
But rather by concentrating their money in the one stock they understood best.
- Jeff Bezos got rich not by holding hundreds of stocks in a diversified account, but by concentrating his capital in the one stock he knew would succeed – Amazon.
- Bill Gates did the same with Microsoft.
- Sam Walton did it with Wal-Mart.
- And Steve Jobs did it with Apple until leaving the company in 1985.
These people all got rich by concentrating their wealth in single stocks.
Of course, you might be thinking, “Yes, but they are the founders of those companies.”
That’s true… but their shareholders got rich right alongside them. Many saw a small stake turn into many millions of dollars.
That possibility is also available to you, if you find the right stock and take action.
Thousands of Americans Have Retired by Identifying Just One Great Stock
Microsoft is a classic example. From its IPO to today, every $1,000 has turned into more than $1.6 million.
Bill Gates became a billionaire. But right alongside him, thousands of ordinary people also got rich.
The New York Times estimates that at least 10,000 people became millionaires by the year 2000.
The “Microsoft Millionaires” include people like…
- Andrea Lewis, estimated to be worth $2 million, who started Hugo House, a center for writers in Seattle, with her profits
- Jim Allchin, who retired and became a renowned blues guitarist
- Chris Peters, a bowling enthusiast, who cashed out and bought the Professional Bowlers Association for an estimated $5 million (and then promptly set it on track to turn profitable and double its revenue).
For them, one stock did it all. It gave them the freedom to escape the rat race and follow their dreams.