#285 Jay Gould (How Jay Gould Built Wall Street's Biggest Fortune)

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Jan 10, 2023

Explore the life of Jay Gould, a masterful strategist and controversial figure in 19th-century finance. Learn about his rise from personal tragedy to becoming Wall Street's biggest fortune, praised by titans like Rockefeller and Vanderbilt. Discover his cunning tactics in the competitive railroad industry and his battles against rivals. Delve into the duality of his character, balancing ruthless ambition with familial devotion, while contrasting his methods with modern business philosophies from luminaries like Warren Buffett.

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ANECDOTE

Jay Gould's Difficult Childhood

Jay Gould's early life was marked by poverty, death, and his father's alcoholism.
Despite this, he developed a strong work ethic and attention span, reading voraciously and solving math problems relentlessly.

ANECDOTE

Gould's Path to Partnership

Gould decided against college, believing self-education was more valuable.
His surveying skills led him to a partnership with Zadok Pratt, a wealthy tanner.

INSIGHT

The Power of Financial Markets

Gould realized that true power and profit lay in the financial markets, not manufacturing.
He saw Wall Street as "money-making distilled to its essence."

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American Rascal

Greg Steinmetz

American Rascal by Greg Steinmetz explores the life of Jay Gould, a pivotal figure in the Gilded Age known for his brilliant yet ruthless financial strategies. Gould's story highlights the era's unregulated capitalism and its impact on American business values. The book provides a gripping narrative of Gould's exploits, from manipulating markets to building a vast railroad empire, and how his actions led to early calls for financial reform.

All I Want to Know Is Where I'm Going to Die So I Can Avoid Going There

How to Live a Longer, Healthier Life

James P. O'Shaughnessy

In this book, James O'Shaughnessy applies his analytical skills to the field of health and longevity. He uses data and research to identify common causes of death and provides strategies for avoiding them, aiming to help readers live longer and healthier lives. The book is an extension of his quantitative approach, this time applied to health rather than finance.

Tycoon's War

Stephen Dando-Collins

Tycoon's War chronicles the epic clash between American adventurer William Walker, who briefly conquered Nicaragua in the mid-1850s, and Cornelius Vanderbilt, who sought to control shipping routes across Central America. The book explores their contrasting visions of Manifest Destiny and the violent conflict that ensued. It delves into the military campaigns and the broader historical context of U.S. involvement in the region.

Conspiracy

Ryan Holiday

In 'Conspiracy', Ryan Holiday chronicles the intricate and ambitious plot by Peter Thiel to take down Gawker Media. The book is based on interviews with key players and delves into the strategic and philosophical underpinnings of Thiel's actions. It examines the intersection of power, privacy, and free speech in the digital age, highlighting the ruthless and brilliant tactics employed by Thiel. The narrative transcends a simple tale of a billionaire vs. a media empire, offering insights into the broader implications for culture and society.

James J. Hill

Empire Builder of the Northwest

Michael P. Malone

This biography by Michael P. Malone explores the complex life and personality of James J. Hill, his activities and interests, and the development of the Great Northern Railway. Hill, born in 1838 near Rockwood, Ontario, rose from humble beginnings to become a key figure in the construction of a transcontinental railroad. The book delves into Hill's contributions to transportation, agriculture, mining, lumbering, and maritime trade in the region, as well as his personal and business interactions that shaped the regional economy[1][2][4].

My life and work

Ford, Henry, Crowther, Samuel

E. Kalita

Mrs Henry Ford

Henry Ford

Samuel Crowther

Ford Henry 1863-1947

Henry Henry Ford

In this autobiography, Henry Ford recounts his early life on a farm in Michigan, his fascination with mechanics, and his journey to becoming a successful businessman. The book covers his innovative approaches to industry and mass production, his views on business, wages, and social concerns, and how he applied his principles to various sectors beyond the automotive industry. Ford also shares his stringent and sometimes controversial views on life, business, and society[1][3][4].

Ogilvy on Advertising

David Ogilvy

This book provides comprehensive insights into the world of advertising, covering topics such as how to get a job in advertising, how to choose an agency for your product, the secrets behind effective advertising, how to write successful copy, and the role of research in advertising. Written with brutal candor and generosity, Ogilvy shares his extensive knowledge and experience in the industry, making it a valuable resource for both professionals and those interested in advertising.

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 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.

Edison a Biography

Matthew Josephson

M Josephson

Matthew Josephson's 'Edison: A Biography' provides a detailed and nuanced portrayal of Thomas Alva Edison, highlighting his inventions, business ventures, and personal life. The book delves into Edison's role as a transitional figure between the craftsman-tinkerer and the modern scientist, and it explores his contributions to the development of the telegraph, electric lighting, phonograph, and motion picture industries. Josephson's work is based on extensive research, including materials from the Edison archives, offering a rich and authoritative account of Edison's life and legacy.

The Almanack of Naval Ravikant

A Guide to Wealth and Happiness

Naval Ravikant

Eric Jorgenson

Tim Ferriss

The Almanack of Naval Ravikant is a compilation of Naval's thoughts on fundamental principles for happiness, wealth creation, decision-making, and personal growth. The book distills his insights from the last ten years into practical advice, guiding readers on how to walk their own unique path toward a happier, wealthier life. It emphasizes the importance of compound interest, leveraging resources, and productizing oneself. The book also delves into key aspects of life, including relationships, health, and purpose, offering a holistic approach to wealth and happiness.

What I learned from reading American Rascal: How Jay Gould Built Wall Street's Biggest Fortune by Greg Steinmetz.

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[0:01] A series of spectacular financial triumphs had made Gould fabulously rich. At age thirty-six, he was the most notorious businessman in the country.

[1:00] Vanderbilt told a newspaper that Gould was "the smartest man in America." Rockefeller, when asked who he thought had the best head for business, answered "Jay Gould" without pausing to think.

They recognized Gould as a master of his craft. No one disputed that he was an extraordinary problem solver, an unparalleled negotiator, an expert communicator, a lightning-fast thinker, and a masterful tactician with a staggering memory.

[2:00] Railroads changed America in the nineteenth century much as automobiles changed the country in the twentieth century and the internet has changed the twenty first century.

[5:00] American Rascal shows the complex and quirky character of the nineteenth century's greatest robber baron. He was at once praised for his brilliance by Rockefeller and Vanderbilt and condemned for forever destroying American business values by Mark Twain. He lived a colorful life, trading jokes with Thomas Edison, figuring in Thomas Nast's best sketches, paying Boss Tweed's bail, and commuting to work in a 200-foot yacht.

[6:00] I consider this part two in a two part series on Jay Gould. Make sure you listen to part 1: Dark Genius of Wall Street: The Misunderstood Life of Jay Gould, King of the Robber Barons by Edward J. Renehan Jr. (Founders #258)

[9:00] He read whatever he could get his hands on. Jay was often nowhere to be found. He was off hiding somewhere with his books.

[10:00] He would wake up at three to study by firelight.

[10:00] My Life and Work by Henry Ford. (Founders #266)

[12:35] “As you know. I’m not in the habit of backing out of what I undertake, and I shall write night and day until it is completed.”

[13:00] Relentless and self-confident: Gould toyed with the idea of college. He visited Rutgers, Yale, Harvard, and Brown. He concluded college was an expensive indulgence. Why bother with college when he could teach himself from books?

[13:00] I am determined to use all my best energies to accomplish this life's highest possibilities.

[22:00] The Almanack of Naval Ravikant: A Guide to Wealth and Happiness by Naval Ravikant and Eric Jorgenson. (Founders #191)

[22:00] All I Want To Know Is Where I'm Going To Die So I'll Never Go There: Buffett & Munger – A Study in Simplicity and Uncommon, Common Sense by Peter Bevelin

[26:00] Conspiracy: Peter Thiel, Hulk Hogan, Gawker, and the Anatomy of Intrigue by Ryan Holiday. (Founders #31)

[30:00] The good ones know more. — Ogilvy on Advertising by David Ogilvy (Founders #82)

[37:00] The story of how Gould seized Erie shows his brilliance as a financial strategist, his deep understanding of law, a surprising grasp of human nature, and a mastery of political reality.

[41:00] Tycoon's War: How Cornelius Vanderbilt Invaded a Country to Overthrow America's Most Famous Military Adventurer by Stephen Dando-Collins (Founders #55)

[42:00] There isn't any secret. I avoid bad luck by being patient. Whenever I'm obliged to get into a fight, I always wait and let the other fellow get tired first.

[44:00] James J. Hill: Empire Builder of the Northwest by Michael P. Malone. (Founders #96)

[52:00] Edison and Gould shared some traits. Both were born into poverty. Both thought about little beside their obsessions —inventions for Edison, money for Gould. Both worked all the time. Both had spent their childhoods reading anything that came their way.

[53:00] Edison: A Biography by Matthew Josephson. (Founders #267)

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