TIL How Quincy, Florida Became A Town Of Coca-Cola MillionairessteemCreated with Sketch.

in #til6 years ago (edited)

The amazing, but simple, story of how everyday normal people in this small town became ridiculously wealthy

Pat Munroe
In the 1920’s a banker named Pat Munroe urged his neighbors in the small farming town of Quincy, Florida to buy Coca-Cola stock. He had noticed that even the poorest person would spend a nickel to buy the small luxury that was a bottle of Coke, and the stock price was right. Shortly after Coca-Cola’s Initial Public Offering (IPO) of $40 per share it had dropped to just $19 on news of a conflict the company was having with its bottlers and the sugar industry. It was selling for less than the amount of money it held in the bank!

Seeing such an incredible opportunity, he spread the word and issued loans to people to buy shares – the loans being backed by those same shares. He said to buy the shares and hold them forever, approximately 67 families did just that.

The dividends from these shares supported the families and the town during the great depression, Quincy soon became the richest town per capita in the whole of the USA. Most of the families ended up putting the shares in trust funds to protect the investment, and passed the wealth down to the current generation. Pat Munroe had two wives during his life, and eighteen children. He was able to leave each child an inheritance worth $1,000,000 - pretty much all of it from Coca-Cola shares!

While many of the next generations of these families have left the small town (population 8,000), in 1996 it was estimated that people with a combined $375 million dollars in Coca-Cola wealth were still living there.

Here is the part that will blow your mind. If your great grandma had bought just one share of Coca-Cola way back then at $19, and reinvested all the dividends, it would be worth over $10,500,000 today! The yearly dividend would be over $355,000 - that is $89,000 every three months. The number of shares held in this example is in the ballpark of 253,500!

If she never reinvested the dividends and spent them instead, that one share would have turned into over 9,216 because of stock splits and be worth about $380,000 – still a great investment and plenty of spending money along the way!

Data from 2012

That was just what ONE share turned into. Imagine if she purchased more.

The power of compounding is evident in this story. What can you invest in today so that you can enjoy later on?

Steemit could be the investment of our lives, and for that reason I never sell. Once steem comes into my hands, it stays there. It could be like the story of Laszlo Hanyecz who spent 10,000 bitcoins for two pizzas back in 2010. Today those bitcoins are worth $7.3 million dollars! Those are some expensive pies!

Back then bitcoin wasn’t worth much, so it seemed like a great deal. Today some people think steem is worth little, but things change. In the future, I wouldn’t want to look back and see that I sold steem for a dime when it is valued at 1000x current prices.

Do what you want, but I will continue to hold all steem that comes my way.



Ah, hindsight. If only we could know for sure what the future holds... I've had these same kinds of thoughts about Microsoft stock, and Apple. Imagine investing into the emerging tech companies in the 1980s and then holding until today. It's hard to say what the next big thing is going to be, but Steemit sure does have a lot of potential, and at these prices it's a good time to accumulate as much Steem as possible. Eventually the price will head up again and when it does, you want to already be well positioned to benefit. Great story!

Exactly, you never know how the future will turn out. Steemit has a good chance to be revolutionary, so I wouldn't be dismissive of it at such an early stage. Thanks for the comment :D

Very good point. TIL something new and the potential value in Steemit.

Great, I love searching for interesting stories that I think people haven't heard about and then sharing them with steemit. :D

Great story:) I had not heard it before. I bet people said those people investing were crazy too. Things don't really change.

Yes I think there are always naysayers who mock everyone who actually takes some kind of action - doesn't just apply with money/stocks etc.

Wish I had a time machine, man! That Coca-Cola story is just crazy! Let's hope something similar happens to Steem, lol!

ah! coca cola is my favourite

I actually don't have any Coke stocks, but I got Pepsi

Upvoted and followed. A nice analogy. Makes me feel positive about my own investment in Steem!

What the hell. Resteemed as well! I really really enjoyed this article.

Thanks so much! :D

And some day, people will look back on us here accumulating and holding steem as they look upon these Coca-Cola Millionaires.

Hopefully :)

This being said, I cannot stand coca cola ;)

Maybe being a millionaire will be more tolerable ;)

Sure! Unfortunately, I am far from being one... I haven't probably chosen the right job for this ^^

You and me both man lol.

Indeed, if we make it so.

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Or maybe like those Dutch who bought tulip bulbs.

Or Spawn #1, which was supposed to be the next big thing in comics: creator-owned, dark, edgy antihero. Except comics mostly become valuable by being rare, and they printed (and sold) a lot of these.

Or this stock, which I bought in the late 1990s, and which I still believe in as a potentially transformative technology, which has earned me less than 4x return.

My point being that there's a lot of luck involved. Quincy is a great story, no doubt about that (which is why I upvoted it), but it's not evidence for an argument. That would require some data on the performance of buy-and-hold strategies across the board.

Yep, nobody knows the future. I said it could be great, not that it is guaranteed or anything. Maybe it will never go above the current price and the people selling are the smart ones. I'll hold mine though.

This is not an example of "compounding". This is an example of investing in a small company that got big.

Also, many people on Wall Street did the same thing, borrowing money to buy shares. And they lost big in the crash.
In this case, the banker saw that the stock's bankrupt value was worth more than the purchase price. Good fundamental analysis.
The same thing happened years later with IBM.

This is exactly compounding. The difference of reinvesting dividends compared to not doing so. You can google 'compounding dividends' as there is no need to argue this.

Yes, this is one example of many smart investments throughout history. I will grant you that there is some survivor bias, but it is what we see.

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