Engineering Economic Analysis

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Anne Scheiber's Bonanza


When Anne Scheiber died in 1995,age 101, she left an estate worth more than $20 million.
It all went to YeshivaUniversity in New York. The university's officials were grateful. But
who, they asked, was Anne Scheiber?
She wasn't a mysterious heiress or a busi-
ness tycoon, it turned out. She was a retired
IRS auditor who had started investing in 1944,
putting $5000-her life savings up to that
point-into the stock market.
Scheiber's portfolio was not based on get-
rich-quick companies. In fact, it contained
mostly "garden variety" stocks like Coca Cola
and Exxon. Scheiber typically researched stock
purchases carefully, and then held onto her
shares for years, rather than trading them. She
also continually reinvestedher dividends.
Despite her increasing wealth, Scheiber
never indulged in a lavish lifestyle. Acquain-
tances described her as extremely frugal and
reported that she lived as a near recluse in her
small apartment.
What motivated Scheiber to accumulate so
much money? In largepart, it seems to havebeen
a reaction to her life experiences.Scheiberworked for over 20 years as a tax auditorbut failed
to receivepromotions. She attributedher lack of professional advancementto discrimination
against her as a Jewish woman. At herrequest, the endowmentshe left to YeshivaUniversity
was used to fund scholarships and interest-free loans for women students.
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