#283 Andrew Carnegie

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Dec 26, 2022

Discover the remarkable journey of Andrew Carnegie, from his humble Scottish beginnings to becoming a titan of the American steel industry. The discussion dives into his business philosophies, focusing on cost control and innovative manufacturing techniques. Learn about his strategic partnerships and the role of self-education in his success. The talk also delves into Carnegie’s legacy in philanthropy, emphasizing his commitment to public libraries and the enduring impact of his principles on modern business.

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ADVICE

Optimism as a Life Strategy

Cultivate a sunny disposition; it's more valuable than fortune.
Laugh trouble away if possible, as the mind can be trained like the body.

ADVICE

The Judge Within

Judge yourself by your own internal standards, not external opinions.
Fear only your own self-reproach, as this internal judge cannot be deceived.

ANECDOTE

The Impact of Technological Disruption

Carnegie's family faced poverty when his father failed to adapt to technological advancements in the linen industry.
This experience instilled in Carnegie a strong resolve to overcome poverty.

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Henry Clay Frick: The Life of the Perfect Capitalist

Quentin Skrabec Jr.

This book delves into the life of Henry Clay Frick, highlighting his role as a pivotal figure in American industry, particularly in the steel and coke sectors. It examines his complex persona, marked by both his business acumen and his involvement in significant historical events like the Johnstown Flood and the Homestead Strike.

Andrew Carnegie's Autobiography

Andrew Carnegie

Last Train to Paradise

Henry Flagler and the Spectacular Rise and Fall of the Railroad that Crossed an Ocean

Les Standiford

This book chronicles the extraordinary story of the construction and operation of the railroad from Miami to Key West, often referred to as 'Flagler’s Folly'. It details the engineering challenges, the personal struggles of Henry Flagler, and the impact of the railroad on Florida and Key West. The narrative also includes a gripping account of the devastating 1935 hurricane that destroyed much of the railroad. The book blends historical facts with engaging storytelling, capturing the era and the characters involved in this monumental engineering feat.

Dark Genius of Wall Street

The Misunderstood Life of Jay Gould, King of the Robber Barons

Edward J. Renehan Jr.

This book by Edward J. Renehan Jr. offers a nuanced view of Jay Gould, often reviled as Wall Street's greatest villain. It highlights his strategic brilliance and contributions to modern business, while also exploring his personal life and the societal context of his time. The biography provides insights into Gould's rise in the railroad industry and his complex business tactics.

The House of Morgan

An American Banking Dynasty and the Rise of Modern Finance

Ron Chernow

This book is a rich, panoramic story of four generations of the Morgan family and their secretive firms that transformed the modern financial world. It traces the trajectory of J.P. Morgan’s empire from its obscure beginnings in Victorian London to the financial crisis of 1987. Chernow explores the family’s private saga, their involvement in major infrastructure projects, their influence on foreign policy, and their relationships with prominent figures like Charles Lindbergh, Henry Ford, Franklin Roosevelt, Nancy Astor, and Winston Churchill. The book is a masterpiece of financial history, awarded the 1990 National Book Award for Nonfiction and selected by the Modern Library as one of the 100 Best Nonfiction Books of the Twentieth Century.

Francis Ford Coppola

A Filmmaker's Life

Michael Schumacher

This book provides a detailed account of Francis Ford Coppola's life and career, covering his early years, his apprenticeship under Roger Corman, and his direction of iconic films such as the Godfather trilogy, Apocalypse Now, and The Conversation. It explores his successes and failures, including the challenges faced during the filming of Apocalypse Now and the impact of personal crises on his work. The biography is based on extensive access to Coppola's friends, critics, peers, casts, and crews, offering a complete picture of this complex and conflicted cinematic genius.

The essays of Warren Buffett

Lessons for Corporate America

Warren Buffett

This book is a comprehensive collection of Warren Buffett's annual letters to Berkshire Hathaway shareholders, edited by Lawrence A. Cunningham. It provides valuable insights into Buffett's investment philosophy, corporate management, and business strategies. The letters are organized into thematic chapters, making it easier for readers to understand Buffett's views on various topics such as value investing, executive compensation, and market fluctuations. The book is praised for its clarity, wisdom, and practical advice, making it a definitive source for understanding Buffett's approach to business and investing.

Benjamin Franklin

An American Life

Walter Isaacson

This biography by Walter Isaacson chronicles the life of Benjamin Franklin from his early days as a runaway apprentice to his later years as one of America's most influential Founding Fathers. The book explores Franklin's contributions to science, politics, and literature, including his work on the Declaration of Independence, his diplomatic efforts in France, and his inventions such as bifocal glasses and the lightning rod. Isaacson also delves into Franklin's personal life, including his relationships and his philosophical underpinnings that shaped American society. The narrative highlights how Franklin helped forge the American national identity and his enduring relevance in the twenty-first century.

Meet You in Hell

Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership That Transformed America

Les Standiford

This book tells the riveting story of Andrew Carnegie and Henry Clay Frick, two founding fathers of American industry, and their bitter rivalry that emerged from their partnership. The narrative focuses on the 1892 Homestead steel strike, which was one of the deadliest labor disputes in U.S. history. Standiford captures the majesty and danger of steel manufacturing, the rough-and-tumble business world, and the fraught relationship between 'the world’s richest man' and the ruthless coke magnate. The book explores themes of industrialization, labor conflicts, and the personal idiosyncrasies of these two industrial titans[1][4][5].

The snowball

Warren Buffett and the Business of Life

Alice Schroeder

This book provides an unprecedented look into the life and investment philosophy of Warren Buffett. Written by Alice Schroeder, who gained unparalleled access to Buffett and his inner circle, it delves into the complexities and paradoxes of Buffett's life. The book covers his work, opinions, struggles, and triumphs, and highlights key principles such as intrinsic value, margin of safety, and long-term perspective. Buffett’s legacy is not just his wealth, but the principles and ideas that have enriched people’s lives.

What I learned from rereading The Autobiography of Andrew Carnegie by Andrew Carnegie.

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(1:01) 3 part series on Andrew Carnegie and Henry Clay Frick:

Meet You In Hell: Andrew Carnegie Henry Clay Frick, and the Bitter Partnership That Transformed America by Les Standiford. (Founders #73)

The Autobiography of Andrew Carnegie by Andrew Carnegie (Founders #74)

Henry Clay Frick: The Life of the Perfect Capitalist by Quentin Skrabec Jr. (Founders #75)

(2:00) What these guys all had in common is they were hell bent on knowing their business down to the last cent. They were obsessed with having the lowest cost structure in their industry.

(2:00) Highlights from Meet You in Hell: Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership That Changed America:

—Cut the prices, scoop the market, watch the costs, and the profits will take care of themselves.

—Frick knows his business down to the ground.

—Frick’s rise from humble beginnings was obviously intriguing to him. It signaled to Carnegie that Frick was another of the fellow “fittest,” and those were the individuals with whom Carnegie sought to align himself.

—Carnegie would repeat the mantra time and again: profits and prices were cyclical, subject to any number of transient forces of the marketplace. Costs, however, could be strictly controlled, and in Carnegie’s view, any savings achieved in the costs of goods were permanent.

—On this issue the two men were of one mind. Frick had made his way in coke by the same reckoning that Carnegie had in rail and steel: if you knew your costs down to the penny, you were always on firm ground.

(6:00) Benjamin Franklin: An American Life by Walter Isaacson. (Founders #115)

(7:00) A sunny disposition is worth more than a fortune. Young people should know that it can be cultivated; that the mind like the body can be moved from the shade into sunshine.

(7:00) The Snowball: Warren Buffett and the Business of Life by Alice Schroeder. (Founders #100)

(8:00) The most important judge of your life story is yourself.

(9:00) You can always understand the son by the story of his father. The story of the father is embedded in the son. —Francis Ford Coppola: A Filmmaker's Life by Michael Schumacher. (Founders #242)

(10:00) Invest in technology, the savings compound, it gives you an advantage over slower moving competitors, and can be the difference between a profit and a loss.

(17:00) He is working from sunrise to sunset for $1.20 a week and he is ecstatic about being able to help his family avoid poverty.

(18:00) Andrew Carnegie had manic levels of optimism.

(20:00) Do not delay. Do it now. It is a great mistake not to seize the opportunity. Having got myself in, I proposed to stay there if I could.

(21:00) I felt that my foot was upon the ladder and that I was about to climb.

(21:00) Lesson from Andrew Carnegie’s early life: Focus on whatever job is in front of you at this very moment and do the best you can. You can never know what opportunities that will unlock in the future.

(24:00) On the miracle of reading and having free access to a 400 volume personal library: In this way the windows were opened in the walls of my dungeon through which the light of knowledge streamed in. Every day's toil and even the long hours of night service were lightened by the book which I carried about with me and read in the intervals that could be snatched from duty. And the future was made bright by the thought that when Saturday came a new volume could be obtained.

(26:00) To Colonel James Anderson, Founder of Free Libraries in Western Pennsylvania:

He opened his Library to working boys and upon Saturday afternoons acted as librarian, thus dedicating not only his books but himself to the noble work. This monument is erected in grateful remembrance by Andrew Carnegie, one of the "working boys" to whom were thus opened the precious treasures of knowledge and imagination through which youth may ascend.

(28:00) Running Down A Dream: How to Succeed and Thrive in a Career You Love by Bill Gurley

(36:00) Dark Genius of Wall Street: The Misunderstood Life of Jay Gould, King of the Robber Barons by Edward J. Renehan Jr. (Founders #258)

(43:00) This policy is a true secret of success: Uphill work it will be.

(46:00) Put all your eggs in one basket and watch that basket.

(46:00) The most expensive way to pay for anything is with time.

(48:00) The men who have succeeded are men who have chosen one line and stuck to it. It is surprising how few men appreciate the enormous dividends derivable from investment in their own business.

(48:00) My advice to young men would be not only to concentrate their whole time and attention on the one business in life in which they engage, but to put every dollar of their capital into it.

(51:00) The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance by Ron Chernow. (Founders #139)

(52:00) Last Train to Paradise: Henry Flagler and the Spectacular Rise and Fall of the Railroad that Crossed an Ocean by Les Standiford. (Founders #247)

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