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At a young age, Sam Zemuri enters the banana trade and identifies the potential in selling ripe bananas that others consider trash. He rapidly expands his business, eventually partnering with United Fruit Company and merging with other banana companies. Zemuri's relentless resourcefulness and willingness to take risks propel him to become a major figure in the industry.
The founders of United Fruit, including Lorenzo Baker, Andrew Preston, and Minor Keith, play significant roles in the banana industry. They recognize Zemuri's talent and partner with him, creating the world's first truly global corporation. These founders merge multiple companies into United Fruit and dominate the banana trade, drawing parallels to the business tactics of John D. Rockefeller in the oil industry.
As Zemuri's success in the banana trade grows, he expands his operations from importing to owning land and growing his own bananas. He seeks to vertically integrate his business and ensure a steady supply while maintaining control over quality. Zemuri's meticulous attention to detail and relentless pursuit of improvement sets him apart in the industry.
Zemuri ventures to Honduras, a frontier town filled with lawlessness and criminal activity due to its lack of extradition treaty with the United States. Despite the challenges, Zemuri crosses the country by mule, displaying his endurance and persistence. This journey marks a turning point in his career as he establishes his presence in Honduras and sets the stage for future exploits.
Sam Zemurray crossed Honduras on mule back to learn the country and scout his property. He bought his first piece of land for $2,000 and soon had beef with his partner over financial constraints. Zemurray's audaciousness and ability to act on opportunities set him apart. He returned to Honduras in 1910, buying as much land as he could until his cash ran out. He navigated the complexities of politics, corruption, and concessions to establish his banana business. His deep understanding of every aspect of the industry and his willingness to do physical labor led to his success. Zemurray's hands-on approach and relentless drive propelled him to overcome challenges and build a superior business.
Zemurray's mindset was driven by a desire to win and a refusal to succumb to failure. His relentless work ethic defined his approach to business. He believed in the power of physical labor and the importance of experiencing every aspect of the industry. Zemurray's ability to innovate and adapt allowed him to thrive even in challenging times. His audacity and willingness to take risks led him to explore new crops and expand his business beyond bananas. Zemurray's determination and resilience set him apart as a founder who never stopped striving for success.
Zemurray's takeover of the United Fruit Company showcased his shrewd business acumen. He implemented bold changes, such as replacing inefficient managers and streamlining operations. Zemurray's hands-on approach and deep understanding of the industry led to significant improvements in productivity and profitability. He set the stage for United Fruit's success by aligning his company's interests with key government officials and leveraging their support. Zemurray's innovative strategies and unwavering pursuit of success solidified his position as a dominant force in the industry.
Zemurray's life was marked by resilience and tragedy. The death of his son during World War II was a profound personal loss. However, Zemurray did not allow himself to be consumed by grief. He continued to work tirelessly, adapting to changing market dynamics and seeking new opportunities. Zemurray's ability to navigate through adversity showcased his determination and refusal to give up. His legacy as a transformative figure in the banana industry lives on, with the impact of his visionary leadership and innovative strategies continuing to resonate.
What I learned from rereading The Fish That Ate the Whale: The Life and Times of America's Banana King by Rich Cohen.
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[4:47] This story can shock and infuriate us, and it does. But I found it invigorating, too. It told me that the life of the nation was written not only by speech-making grandees in funny hats but also by street-corner boys, immigrant strivers, crazed and driven, some with one good idea, some with thousands, willing to go to the ends of the earth to make their vision real.
[8:56] Tycoon's War: How Cornelius Vanderbilt Invaded a Country to Overthrow America's Most Famous Military Adventurer by Stephen Dando-Collins (Founders #55)
[10:00] Unlike Vanderbilt's other adversaries William Walker was not afraid of Cornelius when he should have been.
[12:21] The immigrants of that era could not afford to be children.
[12:42] The Adventures of Herbie Cohen: World's Greatest Negotiator by Rich Cohen
[12:54] He was driven by the same raw energy that has always attracted the most ambitious to America, then pushed them to the head of the crowd. Grasper, climber-nasty ways of describing this kid, who wants what you take for granted. From his first months in America, he was scheming, looking for a way to get ahead. You did not need to be a Rockefeller to know the basics of the dream: Start at the bottom, fight your way to the top.
[14:01] There is no problem you can't solve if you understand your business from A to Z.
[17:08] Sam spotted an opportunity where others saw nothing.
[18:17] As far as he was concerned, ripes were considered trash only because Boston Fruit and similar firms were too slow-footed to cover ground. It was a calculation based on arrogance. I can be fast where others have been slow. I can hustle where others have been satisfied with the easy pickings of the trade.
[18:42] The kid on the streets is getting a shot at a dream. He sees the guy who gets rich and thinks, yep, that'll be me. He ignores the other stories going around. // There's no way to quantify all that on a spreadsheet, but it's that dream of being the exception, the one who gets rich and gets out before he gets got that's the key to a hustler's motivation. —Decoded by Jay Z. (Founders #238)
[26:36] He was pure hustle.
[28:15] Preston later spoke of Zemurray with admiration. He said the kid from Russia was closer in spirit to the banana pioneers than anyone else working. "He's a risk taker," Preston explained, “he's a thinker, and he's a doer.”
[30:33] They don't write books about people that stopped there.
[32:48] Titan: The Life of John D. Rockefeller by Ron Chernow (Founders #248) and John D: The Founding Father of the Rockefellers by David Freeman Hawke. (#254)
[34:22] He seemed to strive for the sake of striving.
[34:44] If you're on a mans side you stay on that mans side or you're no better than a goddamn animal.
[35:11] The world is a mere succession of fortunes made and lost, lessons learned and forgotten and learned again.
[39:41] A man whose commitment could not be questioned, who fed his own brothers to the jungle.
[40:00] The Forgotten Highlander: An Incredible WWII Story of Survival in the Pacificby Alistair Urquhart.
[41:02] Why the Founders of United Fruit were the Rockefellers of bananas.
[47:23] He kept quiet because talking only drives up the price.
[48:19] There are times when certain cards sit unclaimed in the common pile, when certain properties become available that will never be available again. A good businessman feels these moments like a fall in the barometric pressure. A great businessman is dumb enough to act on them even when he cannot afford to.
[53:30] He believed in the transcendent power of physical labor—that a man can free his soul only by exhausting his body.
[1:02:04] He disdained bureaucracy and hated paperwork. So seldom did he dictate a letter that he requires no full-time secretary.
[1:04:01] He was respected because he understood the trade. By the time he was 40 he had served in every position. There was not a job he could not do nor a task he could not accomplish. He considered it a secret of his success.
[1:05:02] Rick Rubin: In the Studio by Jake Brown. (Founders #245)
[1:08:00] Zemurray was the founder, forever on the attack, at work, in progress, growing by trial and error.
[1:10:44] Here was a self-made man, filled with the most dangerous kind of confidence: he had done it before and believed he could do it again. This gave him the air of a berserker, who says, If you're going to fight me, you better kill me. If you’ve ever known such a person, you will recognize the type at once. If he does not say much, it's because he considers small talk a weakness. Wars are not won by running your mouth. I'm describing a once essential American type that has largely vanished. Men who channeled all their love and fear into the business, the factory, the plantation, the shop.
[1:11:44] Founder Mentality vs Big Company Mentality: When this mess of deeds came to light, United Fruit did what big bureaucracy-heavy companies always do: hired lawyers and investigators to search every file for the identity of the true owner. This took months. In the meantime, Zemurray, meeting separately with each claimant, simply bought the land from them both. He bought it twice paid a little more, yes, but if you factor in the cost of all those lawyers, probably still spent less than United Fruit and came away with the prize.
[1:13:04] His philosophy: Get up first, work harder, get your hands in the dirt and blood in your eyes.
[1:17:02] For every move there is a counter move. For every disaster there is a recovery. He never lost faith in his own agency.
[1:17:57] A man focused on the near horizon of costs can sometimes lose sight of the far horizon of potential windfall.
[1:20:22] You gentlemen have been fucking up this business long enough. I'm going to straighten it out.
[1:23:03] In a time of crisis the mere evidence of activity can be enough to get things moving.
[1:23:42] Zemurray was never heard to bitch or justify. He was a member of a generation that lived by the maxim: Never complain, never explain.
[1:27:08] The Father of Spin: Edward L. Bernays and the Birth of Public Relationsby Larry Tye
[1:28:14] He should link his private interest to a public cause.
[1:29:32] In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons who understand the mental processes and social patterns of the masses, who harness old social forces and contrive new ways to bind and guide the world.
[1:32:28] Sam's defining characteristic was his belief in his own agency, his refusal to despair. No story is without the possibility of redemption; with cleverness and hustle, the worst can be overcome. I can't help but feel that we would do well by emulating Sam Zemurray–not the brutality or the conquest, but the righteous anger that sent the striver into the boardroom of laughing elites, waving his proxies, shouting, "You gentlemen have been fucking up this business long enough. I'm going to straighten it out.
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“I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested, so my poor wallet suffers. ”
— Gareth
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