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![]() | I know OG apes have seen this multiple times but for newbies or for those who have never heard of this or doubt MOASS can happen, think about this amazing story about this town that believed their DD, invested what they could, never gave up, and many became generational millionaires. submitted by GMEstockboy to Superstonk [link] [comments] TLDR: During the Great Depression, a banker convinced struggling families in Quincy, Florida, to buy Coca-Cola shares that traded at $19. Later, the town became the single wealthiest town per capita in the US, with at least 67 millionaires. (I literally just copy pasted this 2013 article but you can look up "coca cola millionaires". https://preview.redd.it/wxaeb6swata91.jpg?width=3200&format=pjpg&auto=webp&s=2880464e39fc5003f98947341331d27707d03f0f How Quincy, Florida Became a Town of Secret Coca-Cola Millionaires In the 1920s and 1930s, a banker named Pat Munroe in the small town of Quincy, Florida noticed that even during the depths of the Great Depression, otherwise impoverished people would spend their last nickel to buy a glass of Coca-Cola. With good returns on capital, and a once-in-a-century valuation so low that the business was trading for less than the cash in the bank, “Mr. Pat”, as he was called, encouraged everyone he knew to buy an ownership stake in the firm. He would even underwrite bank loans, backed by Coca-Cola stock, for his responsible depositors to encourage people to acquire equity. Coca-Cola Stock SharesCoca-Cola had gone public at $40 per share but a conflict with the sugar industry and its bottlers resulted in a 50% crash shortly thereafter, when it reached $19 per share. Focusing on the bottom-line profits, and the power of the brand, Pat Munroe kept buying. And he kept telling everyone else to buy, too. That one observation, and Mr. Pat’s business skills in convincing others to buy assets that produced cash irrespective of short-term market fluctuations, not only changed lives, it saved the farm town during the Great Depression as the local economy was supported by Coca-Cola dividends. It has also supported the town in “every recession since”, according to the man who now runs the trust department in the bank that was once headed by Munroe. When crops fail, it was the Coca-Cola cash that kept people employed. When the national economy collapsed, it was the Coca-Cola cash that allowed people to stay in their homes. When times were good, and Coke was cheap, more shares were purchased. Quincy became the richest town per capita in the entire United States at the time. At least 67 appropriately dubbed “Coca-Cola millionaires” amassed significant fortunes before passing those fortunes on to their children and grandchildren, in some cases through outright gifts and in other cases through the use of trust funds. The bank where it all started has Coca-Cola on display and, as of four years ago, a staggering 65% of the trust assets under management are still invested in Coke stock. (Coke has had a nice run since then as profits increased and the world recovered from the crash in 2009, so I’d imagine it is even greater today, all else being equal.) A single share with dividends reinvested is worth $10,000,000 in 2013. It would be gushing $270,000 in pre-tax cash dividends to the owner by sending a check for $67,500 or so in March, June, September, and November of each year.One share. One. Had great-grandma and great-grandpa picked up a round lot of 100 shares for $1,900 to $4,000 depending on the purchase price, they’d be sitting on a billion dollars, excluding the effects of estate taxes. (To see those kinds of returns, take a look at the old Sun Trust Bank annual reports. The bank received $100,000 in Coca-Cola shares during the IPO for its part of the underwriting deal and kept the stock in the vault for generations. It grew into billions upon billions of dollars, gushing out tens of millions of dollars a year in dividends that supported the bank’s balance sheet.)Quincy, Florida, and Pat Munroe, are one of my favorite case studies. It was a group of people who decided to ignore the stock market entirely and focus on the one metric that matters: The profit generated by the business, and to a lesser extent, the percentage of that profit that was received each year in the form of dividends. |
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