Growing Rich - Arabictrader.com

GROWING RICH WITH GROWTH STOCKS
research reports just as his older brothers and sister had done before
him.
A FORTUNE IN THE FUNDS
After Davis Senior passed away, the $800 million fortune he
amassed was put into a charitable remainder trust, which is now
primarily invested in Davis’s many mutual funds, including New York
Venture. Any income the trust generates goes to Davis’s mom, Kathryn.
Upon her death, it reverts to the family’s charitable foundation.
The trust was set up like this because the Davis family has long
been against leaving large inheritances to family members. “We want
our kids to be comfortable,” Davis explains. “But we think the biggest
disservice you can do for somebody is to cut off their sense of accomplishment.
If I had a son or daughter who was going to get a great
sense of accomplishment by going into the ministry, for example,
that wouldn’t bother me. I would make sure he or she were well
enough taken care of to live a good life, just not with a jet airplane.
I’m not going to leave kids money to become idle rich. I want them
to pursue whatever career they want and do it extraordinarily well,
just as I believe in having focus and staying within your circle of
competence in investing. You should look in the mirror and be able
to feel proud of what you do in life, whether you’re an artist, minister,
doctor, investor, politician, or anything else. The reason I’m against
giving kids money is because I think it corrupts those instincts to
achieve. My father did leave me money, in the sense that he gave me
the opportunity to manage it. But he was willing to do that because
I proved I could manage it well. If I don’t, the independent board of
directors at our mutual funds has the power to fire me. So it’s not as
if I was left an income stream that I don’t have to work for. I feel the
same way about my kids. I want them to do well on their own, and
I think they will.”
WORKING FROM HOME
When Davis turned over day-to-day management of New York
Venture and Selected American to Chris, he had no intention of retiring.
Far from it. He now works harder than ever. But he spends little
time inside his New York office at the World Trade Center, which
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