Two Things You Could Have Done In 1989 To Become A Johnson & Johnson Millionaire Today

If you wanted to accumulate $1,000,000 worth of Johnson & Johnson stock over the past twenty-four years, there are two straightforward ways that you could have accomplished it: some variation of lump sum investing or dollar-cost averaging.

(1)    If you wanted to make an investment in Johnson & Johnson stock on August 19th, 1989 that would be worth $1,000,000 today, you would have had to set aside $43,000 in 1989. That would be roughly the equivalent of coming up with almost $100,000 in terms of today’s purchasing power.

Or:

(2)    You could have initiated a dollar-cost averaging program. To have $1,000,000 today, you would have had to put $432 into Johnson & Johnson stock every month since 1989. That would have been about $125,000 in nominal dollars, which would be time-consuming to adjust for inflation (setting aside $432 per month in 1989 was really the equivalent of setting … Read the rest of this article!