Janitor Leaves $8 Million

[benbuffett]

This reminds me of my friends Aunt, who past away back in the late 90's. Most of her wealth was made between 94-99 era. Her portfolio holdings were about 1.5mil in 94-95 and by 1998-99 over 4mil. A couple of her top holdings were sysco (syy) and coca cola (ko). She was a very cute old lady from Ireland that kept a pulse on the market. From what I new of her she lived a semi-frugal life while living in downtown Chicago.

 

I'm guessing that the janitors wealth snow balled over the last 6 years.

[Parsad]

I don't know, seems like he missed out on all the good that his hard work and smarts created by dying before he did anything good with the money.  Hope I don't end up like him. 

 

“The man who dies rich, dies disgraced.”

 

You quote Carnegie, but the Janitor did exactly the same thing as Carnegie...donated his wealth to the local library and community.  Perhaps, he was influenced by Carnegie...perhaps he was just a frugal old man who loved investing the way others love crosswords...perhaps he was lonely and selfish.  No one really knows unless you know the man.  For us to comment like we are doing is a lazy simplification of his life.  Cheers!

[kab60]

I don't know, seems like he missed out on all the good that his hard work and smarts created by dying before he did anything good with the money.  Hope I don't end up like him. 

 

“The man who dies rich, dies disgraced.”

 

I think it's quiet impressive what he has done (and not something I could do myself). Instead of getting a lot of recognition for his donations while alive, he has kept compounding until his death and thus left a bigger pile of money that will do good. Isn't that about as unselfish as it gets?

[no_thanks]

I don't know, seems like he missed out on all the good that his hard work and smarts created by dying before he did anything good with the money.  Hope I don't end up like him. 

 

“The man who dies rich, dies disgraced.”

 

You quote Carnegie, but the Janitor did exactly the same thing as Carnegie...donated his wealth to the local library and community.  Perhaps, he was influenced by Carnegie...perhaps he was just a frugal old man who loved investing the way others love crosswords...perhaps he was lonely and selfish.  No one really knows unless you know the man.  For us to comment like we are doing is a lazy simplification of his life.  Cheers!

 

Good point. 

[ccap]

This is an interesting article.  I've spent quite a bit of time thinking about this philosophical question over the last few years.

 

One observation I've noticed is that different people discount the future at different rates.  For example, I'm always looking at my finances on an infinite timeline.  This leads to me living well below my means, investing almost every cent I have, and skipping out on potentially beneficial experiences.  On the other hand, I've noticed that many friends look at finances from the point of view that only now matters.  These friends do great and exciting things but always have the debt wolves at their door.  Unfortunately, I think that we are both wrong.  People live finite lives.  Somehow striking a balance seems nearly impossible for those I know.  We all fall to one side or the other -- with most people in the "now" boat.

 

Another interesting observation comes from the psychology literature on happiness.  Studies have shown that we overestimate how much "stuff" will make us happy in the future.  At the same time, we underestimate how much "experiences" will make us happy in the future.  As value investors, I'm sure the bias is more extreme because we don't want to spend on something as fleeting as an experience.  I know this is the case for me.

 

The janitor may have been making a very rational choice.  His spending power may have been irrelevant to him, but every day of his life may have been improved by the experience of knowing that his assets were going to a worthy cause.

 

[merkhet]

I struggle with this too. Recently, I've been a bit more open to paying for experiences -- but even then, I try to go about it in a value investor way -- went to Europe a few weeks ago because the dollar is strong. :)

[bizaro86]

  As value investors, I'm sure the bias is more extreme because we don't want to spend on something as fleeting as an experience.  I know this is the case for me.

 

Interesting. I'm exactly the opposite. I tend to not buy stuff, because it depreciates at a fast schedule, and ends up worthless. However, I tend to buy much more travel than the average person of my income, because the value I associate with it (memories) are timeless and last forever. The not spending on stuff (cars, gadgets, etc) funds the travel and increased savings compared to the average.

[ccap]

I'm working my way there.  I avoid things that depreciate and otherwise rot -- especially clothes.  If I buy something, it is a tool or vintage car.  The tools don't depreciate too badly, and I buy below fair value on the cars.  I have found that I am willing to pay for experiences for fishing trips.  Somehow I need to broaden that to other areas.

 

If you're in the market for a great experience, try sturgeon fishing on the Columbia river.  Well worth the money.

[Alekbaylee]

Interesting. I'm exactly the opposite. I tend to not buy stuff, because it depreciates at a fast schedule, and ends up worthless. However, I tend to buy much more travel than the average person of my income, because the value I associate with it (memories) are timeless and last forever. The not spending on stuff (cars, gadgets, etc) funds the travel and increased savings compared to the average.

 

Could have written this. Exactly my case. And it pisses me off when people ask me "how I can afford to travel as much". Well I just bought my first flat screen TV a month ago and still have a 2008 laptop, no smartphone, etc.

[Jurgis]

things that depreciate and otherwise rot -- especially clothes.

...

I have found that I am willing to pay for experiences

 

Clothes don't rot. :) I still have some clothes that are 25 years old. Yes, I know.  8)

(I do have most "things" that typical person uses.)

 

I have paid for experiences in the past (travel mostly). This attracts me less nowadays.

 

I do pay more for convenience nowadays. Of course, this is complete waste of money: it is fleeting like experience and it's not even experience. :)

[3259]

How do you balance low expectations with pessimism? Low expectations can lead to more happiness, but then you can become pessimistic, don't reach for the highest goals, and ultimately end up less happier.

 

I've generally found trouble reconciling the two to the point where it's paradoxical to me. Maybe I'm approaching it wrong.

 

I've faced the same issue.  Packer16 's comment about what you can and can't control was awesome.  I wish I had thought of that!  Wish we could +1 comments on here without using facebook.