Streetwise
Lauren Rudd
Sunday, December 13,
2009
A Guaranteed Investment
It is that time of the year again, the time for holiday
parties, gift giving and a good time to be had by all...well maybe not all. Now,
for those of you who have been reading my columns for a number of years, you
know what is coming next, so sit back with another glass of eggnog and think of
it as a refresher course.
For those of you who are new readers, this is the one time of
the year when I stray a bit from my normal investment fare in order to show you
how to achieve some guaranteed exceptional returns that are a bit different in
nature.
It all begins with the concept of compounding, the most
powerful force in the investment world. The funny thing is that compounding
works for more than just financial investments.
This particular example of compounding began in 1947, in Los
Angeles, California. Diane Hendricks has created a handmade Raggedy Ann doll
that she wants to donate to charity. She asks her husband Bill to give the doll
to any organization in the area that would forward it on to a needy child.
Unfortunately, Bill was unable to find such an organization.
In relating this predicament to his wife, Diane’s suggestion
was that maybe Bill should start one. As luck would have it, Bill was also Major
Bill Hendricks, a Marine Reservist. He and his fellow reservists proceeded to
collect and distribute 5,000 toys to needy children.
Their campaign was so successful that the Marine Corps
officially adopted “Toys for Tots” and expanded it into a nationwide effort.
Their mission is the same today as it was back then, to bring holiday joy to
America’s needy children.
“Toys for Tots” received an added boost because in civilian
life Hendricks was also the publicity director for Warner Brothers. Therefore,
in addition to drafting various celebrities to help publicize the program,
Hendricks was able to persuade Walt Disney to design the “Toys for Tots” logo.
That logo is still in use today. Disney also designed the first poster used to
promote what had become a nationwide program.
The investment of one Raggedy Ann doll, in the life of one
child 61 years ago, is now the “Toys for Tots” Foundation, an organization and
program that has collected and distributed more than 370 million toys to 173
million needy children. This charitable endeavor has made the Marines an
unchallenged leader in looking after needy children during the holiday season.
Now do you see what compounding can do?
At this point, as you sit there contemplating your eggnog, I
have a favor to ask. As many of you know, this is the one and only time that I
actually recommend a specific investment, an investment that will pay dividends
far in excess of what you will receive on Wall Street.
Yes, the call for help is never ending, especially this year.
Still, try to imagine what it must be like for a child not to receive a gift
this holiday season. Right now there are 13 million children living in poverty.
Yes, I know many of you are on a restricted budget because of the economy.
Nonetheless, please take the time to purchase at least a small toy or two for a
local charity or the “Toys for Tots” program.
Oh, one other small favor. When you are out shopping, you
will no doubt notice the volunteers outside your favorite store ringing a bell
to try to get your attention. Think about what it must be like to stand outside
for hours on end in winter weather, trying to raise money for the needy. At
least here in Florida the temperature is almost always warm.
Therefore, this is what I would like you to do. Instead of
just walking by, take a moment to pause and reach into your purse or pocket. No,
do not reach for the coins. Please, dig a little deeper. Work your way down to
where you keep the folding stuff. Find that picture of old Abe Lincoln and drop
it in the pot. I am sure old Abe would approve.
Finally, in the event no one takes the time to express his or her appreciation
for your efforts, let me...thank you.
