Anthony Scaramucci hit the jackpot after forgetting about $1,200 worth of Microsoft stock he bought back in 1992.
The former White House communications director demonstrated the true power of long-term, hands-off investing.
Back in 1992, when Scaramucci was 28, he purchased $1,200 worth of Microsoft Corporation stock as a gift for his newborn son, AJ.
At the time, the tech giant wasn’t paying dividends. But Scaramucci checked the box that allowed future dividends to be reinvested - a decision that would eventually pay off in a big way.
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Speaking on The Julia La Roche Show, Scaramucci recalled: “I had an account, it was for my son AJ. He was born on the 23rd of September in 1992. On Oct. 1, I bought him $1,200 of Microsoft."
How did Anthony Scaramucci forget about his Microsoft stock?
In the early ’90s, without digital account access or email notifications, investors had to rely on mailed paper statements. Scaramucci moved several times over the years, and his brokerage, Goldman Sachs, eventually lost track of his updated address.
As a result, the account quietly grew for close to three decades.
The modest $1,200 investment grew significantly over nearly three decades due to reinvested dividends. When he and his son finally rediscovered the account, they were gobsmacked.
Over 30 years later, Scaramucci was shocked to find the balance had increased to an eye-popping $288,000.
“We found the account, it was 26–27 years later. I think I said it went up $88,000, but my son said, ‘No, Dad, it went up $288,000,'” Scaramucci shared.
Interestingly, he admitted that had he remembered the account, he might have sold the shares during Microsoft’s less impressive years.
“There was a period of time when Steve Ballmer was running that company[...] they were flatlining at Microsoft for about eight or nine years,” Scaramucci added.
“I would have sold that stock, didn’t know I owned it, and it ended up being a big win.”
More recently, the founder and CEO of SkyBridge Capital, as well as a current investor, shared some advice for other young investors seeking success.
Advising them to avoid a fear-driven mindset, Scaramucci said: "When people say the word risk, sometimes they only hear downside risk[…] But risk also means reward. And you got to be willing to take some risk."
Additionally, he recommended young investors 'seek out older investors that have been destroyed in the markets,' adding: "It’ll give you perspective and it’ll teach you patience in the markets."
Scaramucci, who offers regular insights on his podcast Open Book with Anthony Scaramucci, also vouches that Bitcoin remains the 'single best investment idea,' as per Benzinga.