Gongol.com Archives: March 2010
Brian Gongol

March 8, 2010

The American Way March 2010 edition of the EconDirectory

The American Way Three shares of stock turn into a $7 million endowment
A woman from Lake Forest, Illinois, bought three shares of stock in Abbott Laboratories in 1935 and proceeded to reinvest all of the dividends. That purchase apparently turned into a $7 million nest egg by the time of her recent death at age 100. She left the amount to Lake Forest College, which was obviously delighted to reap the proceeds. It's definitely a happy story, and one that ought to be appreciated for its celebration of frugality and generosity. It also highlights the trouble with a lot of investing today. One financial advisor, upon being interviewed for the story, offered a common response, saying "clients shouldn't place more than 10 percent of their money into a single source." Which is true...for some investors. The problem with that advice, though, is that it's not applicable to everyone. Risk depends on what you know.

Water News Oh, no: Flooding prospects look even worse for this spring

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