How to Take Over the World The Wealthiest Family of All Time - The Rothschilds (Part 2)
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Jul 12, 2019 Discover how the Rothschild family transformed from poverty to unimaginable wealth in just 50 years. Explore their innovative financial strategies, including the clever use of arbitrage and mastery of government bonds. Uncover the controversies they faced, particularly anti-Semitism, and their resilience in overcoming challenges. Delve into their major influence during financial crises and the factors leading to their decline. Lastly, reflect on their enduring legacy and the evolution of their banking dynasty.
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Rothschilds' Success: Arbitrage
- The Rothschilds' success stemmed from arbitrage, exploiting price differences across markets.
- Their superior information network and communication system gave them a significant advantage.
Arbitrage Explained
- Ben Wilson explains arbitrage using an example of buying gold in Mexico for $90/ounce and selling it in the US for $100/ounce.
- This simple example illustrates how leveraging price differences can generate profit.
Waterloo Advantage
- Nathan Rothschild knew of the British victory at Waterloo before the British government, demonstrating his superior information network.
- This informational advantage allowed him to make profitable trades based on this early knowledge.