2023-08-12 05:21:52
Jim Koch’s company is known for the Samuel Adams beer. Nick Wass/AP Images for Dogfish Head and Samuel Adams
A beer billionaire’s investment strategy is to randomly pick a stock to buy every few weeks.
Jim Koch of the Boston Beer Company entrusts his family’s former babysitter with overseeing his stock portfolio.
At age 12, Koch bought two shares of Procter & Gamble for regarding $140. Today they’re worth $20,000.
This is a machine translation of an article by our US colleagues at Insider. It was automatically translated and checked by a real editor. We welcome feedback at the end of the article.
A beer billionaire Jim Koch randomly selects a stock to buy every two weeks. He entrusts the execution of the deal to his family’s former babysitter. Jim Koch, the 74-year-old co-founder of the Boston Beer Company, recounted “Forbes‘ recently of his unusual investment strategy. He explained that he doesn’t even try to outperform the market through skillful stock picking.
read too
A fund manager who has been in the top 1 percent for the past three years names 10 stocks you should buy now
“I don’t think I stand a remote chance of outwitting the professional investors,” Koch said. He noted that whoever would sell him a stock would likely have more and better information than he did. Instead, he prefers to focus on running his business. He doesn’t invest his money in stocks to get richer, but to protect his wealth and spread his risk, said Koch.
However, it is too tedious for the entrepreneur to monitor his portfolio personally. “I don’t want to take care of it,” he said. “This is boring. It’s annoying.”
Koch leaves the buying and selling to his wife’s assistant, whom he hired as a babysitter two decades ago. Every two weeks, she redeems all losing positions and then randomly selects a single stock to buy from a list of indices like the S&P 500 and the Russell 2000. The “zero engagement” strategy has outperformed most actively managed portfolios and requires minimal effort, Koch told Forbes.
read too
Build your own community with Pils: This is how the Zappes founders do it
The billionaire brewer, whose company is best known for the Samuel Adams beer, began investing in stocks more than 60 years ago. At the age of 12, he took the money he had saved from delivering newspapers and bought two shares of Procter & Gamble for regarding $140. He never sold it, and following six stock splits, it’s now 128 shares, totaling $20,000.
Maybe Jim Koch has a knack for investing, or maybe he just got lucky. Either way, he believes he brings the most value to the beer business. Also, he has no interest in dealing with elite investors like Warren Buffett and Carl Icahn to compete.
External content not available
Your privacy settings prevent the loading and display of all external content (e.g. graphics or tables) and social networks (e.g. Youtube, Twitter, Facebook, Instagram etc.). To view, please activate the settings for social networks and external content in the privacy settings .
Change privacy settings
1691838009
#Beer #billionaire #Jim #Koch #babysitter #buy #random #stocks
