“Yet Groner Felt No Urge To Keep Up With The Neighbors

I originally posted this back in March, but since Abbott Labs (ABT) is now on the Buy List, I thought it a good time to revisit the story of Grace Groner.

In 1935, she invested $180 in ABT. She died last year at the age of 100. That ABT position had grown to $7 million.

Groner was born in a small Lake County farming community, but by the time she was 12 both of her parents had died. She was taken in by George Anderson, a member of one of Lake Forest’s leading families and an apparent friend to Groner’s parents.

The Andersons raised her and her twin sister, Gladys, and paid for them to attend Lake Forest College. After Groner graduated in 1931, she took a job at nearby Abbott Laboratories, where she would work as a secretary for 43 years.

It was early in her time there that she made a decision that would secure her financial future.

In 1935, she bought three $60 shares of specially issued Abbott stock and never sold them. The shares split many times over the next seven decades, Marlatt said, and Groner reinvested the dividends. Long before she died, her initial outlay had become a fortune.

Marlatt was one of the few who knew about it. Lake Forest is one of America’s richest towns, filled with grand estates and teeming with luxury cars, yet Groner felt no urge to keep up with the neighbors.

Posted by on January 3rd, 2011 at 9:43 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.