So excited to welcome my Mom to the show. She got me started with investing, and we continue to talk about the stock market and economics almost daily. Love you, Mom!
When it comes to investment wisdom, sometimes the most valuable insights come from unexpected sources. Meet Delores "Dee" Farrall, a former nurse with no formal business education who transformed herself into an investment guru through determination and disciplined learning after professional money managers lost her family's retirement savings.
"They're all going to lose money. I can at least lose money. I better learn this stuff," Delores recalls thinking in the mid-1970s when she decided to take control of her husband's medical practice retirement funds. This pragmatic approach led her to financial courses at Wittenberg University, where she discovered her north star for investing: the Rule of 72.
The elegance of this principle captivated Delores so completely that decades later, she still writes it in the front of every investment notebook she uses. "If you have $1 and you put it in for 72 years, it will become $2 if you're able to get 1% interest," she explains. "At 24% - which is possible, I've had those years - you can double your money in three years." This fundamental understanding of compound growth has guided her through market cycles with remarkable success.
What sets Delores apart isn't complex algorithms or constant market watching, but rather her unwavering discipline. She maintains stop-loss orders on all positions (typically around 10%), uses Good-Till-Cancelled buy orders at predetermined price points, and focuses intently on a manageable portfolio. "I really basically follow about 10 stocks really well," she shares. "You can get into too many; it gets confusing." Her analog tracking system - starting a fresh spiral notebook each January - helps her make unemotional decisions based on trends and performance.
For new investors feeling overwhelmed, her advice cuts through complexity: just begin. "The best way to follow a stock is to buy a couple of shares of it. You'll follow it so much better if your money's in it than if it isn't." This practical wisdom has not only built her own financial security but influenced a generation of investors, including her son Greg Farrall, who hosts Money Matters and runs Farrall Wealth Management.
Want more investment wisdom from "The Guru"? Email greg@farrallwealth.com with your questions for Delores or to request her return to the show. Listen to Money Matters with Greg on WVLP 103.1 FM Thursdays at 1pm, with replays Saturdays at 1pm, or find it wherever you get your podcasts.
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
The opinions voiced in this podcast are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may suit you, consult the appropriate qualified professional before deciding.
