I’m willing to wager that to some degree most men live in fear of losing their hair. As time marches on we all watch the flowing locks of our youth wither away. It’s a hard pill to swallow, but sooner or preferably later we get there. Perhaps a cure for baldness will pop up tomorrow, but I’m not interested in that right now. For this article I want to focus on turning a negative into a positive. Let’s say you go bald, that’s unfortunate, but instead of dwelling on the bad why not look at the upside. Bald people don’t need hair cuts, or hair gel, or shampoo. How much do guys spend a month on those things? Fifty bucks? That might be a little high, but let’s go with it.
Let’s take a fictional man, I will call him Ben. On January 1st, 2000 Ben went bald, he was a senior in college, so young. It was new years even he was drinking a beer dancing to Prince’s “1999”, the ball drops and so does all of Ben’s hair. What happened? Who knows, I blame Prince. You can say what you like about Prince but the guy just doesn’t any blame, so I am blaming him for Ben’s baldness.
Bald Ben is a resilient man and he bounces back from his follicle failure. He decides to take all of the money that he used to spend on his hair and invest it. He looks around and notices that back in 2000 no one really had a cell phone but some of his friends were starting to sign up for contracts. Ben does some research and decides to invest his hair money into Verzion stock. Every year on December 31st, Ben will buy $600 worth of Verizon stock.
2000-2004: Ben buys 55 shares in total with his $600 of annual investment
Then things get interesting, in 2004 Verizon offers a dividend. For those of you who may not be familiar with investing, a dividend is a portion of the company’s revenue that they give to the share holders, usually on a three month basis. Ben decides to use his divided money to buy even more shares.
2004: Ben buys 16 shares, he receives a dividend payment in the amount of $88 and buys two more share.
Year after year Ben watches as his investment continues to grow.
2005-2008- Ben’s Verizon’s stock goes up and down, but Benny keeps on investing to this point he has accumulated 175 shares.
Ben can see the success of his strategy and he stays the course, he continues to buy $600 worth of stock every year and continues to reinvest his dividend money.
2009-2012 – Ben amasses 284 shares
As of today, Ben’s shares would be worth $14092.08! Over the last 14 years, Ben’s hairy headed friends have had over 150 hair cuts adn nothing to show for it, Ben has over 14k in Verizon stock. He is around 35 years old right now, depending on market circumstances, by the time Ben is 60 his investment could be worth $200,000 to perhaps even $500,000 or even more. He could use this money to retire years earlier then he expected or to start a small business. All of this wealth was made possible by Ben’s decision to turn his hair loss into an investment. Imagine what you could do with just a small change in your annual spending.
Of course the stock market is a volatile thing and no one knows what the future holds. I still believe that opportunities are all around us, we just have to look.