Founders
Episode 248 #248 John D. Rockefeller (Titan)
Founders

Episode 248: #248 John D. Rockefeller (Titan)

Founders

Episode 248

#248 John D. Rockefeller (Titan)

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading Titan: The Life of John D. Rockefeller by Ron Chernow.

What I learned from reading Titan: The Life of John D. Rockefeller by Ron Chernow. 

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[2:15]  Rockefeller trained himself to reveal as little as possible

[4:22] Once Rockefeller set his mind to something he brought awesome powers of concentration to bear.

[4:44] My whole life has been spent trying to teach people that intense concentration for hour after hour can bring out in people resources they didn’t know they had. —Edwin Land

[9:00] When playing checkers or chess, he showed exceptional caution, studying each move at length, working out every possible countermove in his head. "I'll move just as soon as I get it figured out," he told opponents who tried to rush him. "You don't think I'm playing to get beaten, do you?"

[9:20] To ensure that he won, he submitted to games only where he could dictate the rules. Despite his slow, ponderous style, once he had thoroughly mulled over his plan of action, he had the power of quick decision.

[14:49] When John was child, Bill would urge him to leap from his high chair into his waiting arms. One day he dropped his arms letting his astonished son crash to the floor. Remember, Bill lectured him, never trust anyone completely. Not even me.

[15:32] The Chief: The Life of William Randolph Hearst by David Nasaw (Founders #145) He didn't care what people thought of him and despised society.

[16:13] Rockefeller analyzed work, broke it down into component parts, and figured out how to perform it most economically.

[18:49] He was a confirmed exponent of positive thinking.

[19:10] Rockefeller was the sort of stubborn person who only grew more determined with rejection.

[25:14] Rockefeller wasn't one to dawdle in an unprofitable concern. His career had few wasted steps, and he never vacillated when the moment ripened for advancement.

[26:20] He's constantly praising adversity in early life as giving him strength to deal with all the stuff he had to deal with later on his life.

[26:49] Pulitzer: A Life in Politics, Print, and Power by James McGrath Morris. (Founders #135) He was so industrious that he became a positive annoyance to others who felt less inclined to work.

[27:17] Your future hangs on every day that passes.

[36:13] If it is of critical importance to your business you have to do it yourself.

[36:42] In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules by Stacy Perman. (Founders #244)

[38:36] He would never experience a single year of loss.

[39:30] Two quotes from Charlie Munger:

The wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don't. It's just that simple. Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger. (Founders #90)

You should remember that good ideas are rare—when the odds are greatly in your favor, bet heavily. Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark (Founders #78)

[41:03] He's gonna to have a massive advantage over other people who only wanted to book short-term profits.

[42:01]  The Clarks were the first of many business partners to underrate the audacity of the quietly calculating Rockefeller, who bided his time as he figured out how to get rid of them.

[44:27] He's super frugal on one end of the spectrum. Extremely frugal! Not going to let his business waste a penny. But he's also —on the very other end of the spectrum— willing to spend and to borrow and to go big. I will borrow every single dollar the banks will give me. He is the weird combination of extreme frugality and extreme boldness.

[46:08]  Conspiracy: Peter Thiel, Hulk Hogan, Gawker, and the Anatomy of Intrigue by Ryan Holiday (Founders 31)  On that day his partners “woke up and saw for the first time that my mind had not been idle while they were talking so big and loud,” he would say later. They were shocked. They’d seen their empire dismantled and taken from them by the young man they had dismissed. Rockefeller had wanted it more.

[47:13] On that day his partners “woke up and saw for the first time that my mind had not been idle while they were talking so big and loud,” he would say later. They were shocked. They’d seen their empire dismantled and taken from them by the young man they had dismissed. Rockefeller had wanted it more.

[47:37] He would never again feel his advancement blocked by shortsighted, mediocre men.

[48:16] From this point forward, there would be no zigzags or squandered energy, only a single-minded focus on objectives that would make him both the wonder and terror of American business.

[48:38] Random Reminiscences of Men and Events by John D. Rockefeller. (Founders #148) We devoted ourselves exclusively to the oil business and its products. That company never went into outside ventures, but kept to the enormous task of perfecting its own organization.

[55:02] He always kept plentiful cash reserves. He won many bidding contests simply because his war chest was deeper.

[55:46] Alexander the Great: The Brief Life and Towering Exploits of History's Greatest Conqueror--As Told By His Original Biographers by Arrian, Plutarch, and Quintus Curtius Rufus. (Founders #232)

[1:05:37] Twenty-nine-year-old John D. Rockefeller demanded that seventy four-year-old Commodore Vanderbilt, the emperor of the railroad world, come to him. This refusal to truckle, bend, or bow to others, this insistence on dealing with other people on his own terms, time, and turf, distinguished Rockefeller throughout his career.

[1:11:07] The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance by Ron Chernow. (Founders #139)

[1:14:16] This is the investment opportunity of a lifetime and they're running in the opposite direction.

[1:23:37] His master plan was to be implemented in a thousand secret, disguised, and indirect ways.

[1:26:37] I have ways of making money you know nothing about.

[1:30:59] You don't have any ambition to drive fast horses, do you?

[1:32:59] Risk Game: Self Portrait of an Entrepreneur by Francis Greenburger. (Founders #243)

[1:34:42] He was now living a fantasy of extravagant wealth and few people beyond the oil business had ever even heard of him.

[1:35:33] Big Brown: The Untold Story of UPS by Greg Niemann. (Founders #192)

[1:36:00] American high society in the 20th century would be loaded with descendants of those refiners who opted for stock.

[1:39:02]  Enzo Ferrari: Power, Politics, and the Making of an Automobile Empire by Luca Dal Monte (Founders #98)

[1:39:30] Success comes from keeping the ears open and the mouth closed.

[1:40:22] Do not many of us who fail to achieve big things, fail because we lack concentration-the art of concentrating the mind on the thing to be done at the proper time and to the exclusion of everything else?

[1:42:31] Copy This!: How I turned Dyslexia, ADHD, and 100 square feet into a company called Kinkos by Paul Orfalea. (Founders #181)

[1:42:40] Part of the Standard Oil gospel was to train your subordinate to do your job. As Rockefeller instructed a recruit, "Has anyone given you the law of these offices? No? It is this: nobody does anything if he can get anybody else to do it. As soon as you can, get some one whom you can rely on, train him in the work, sit down, cock up your heels, and think out some way for the Standard Oil to make some money.” True to this policy, Rockefeller tried to extricate himself from the intricate web of administrative details and dedicate more of his time to broad policy decisions.

[1:49:50] He entered retirement just at the birth of the American automobile industry. The automobile would make John D. Rockefeller far richer in retirement than at work.

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#248 John D. Rockefeller (Titan)

Introduction

The life of John D. Rockefeller was marked to an exceptional degree by silence, mystery, and evasion. Even though he presided over the largest business in philanthropic enterprises of his day, he has remained an elusive figure. A master of disguises, he spent his life camouflaged behind multiple persona and shrouded beneath layers of mythology. He lingers in our national psyche as a series of disconnected images, ranging from the aggressive creator of Standard Oil, brilliant, but bloodless, to the elderly man dispensing dimes and canned speeches for newsreel cameras. It's often hard to piece together the varied images into a coherent picture. This has not been for a lack of trying. Earlier in the century, Rockefeller inspired more prose than any other private citizen in America, with books about him tumbling forth at a rate of nearly one per year. He was the most famous American of his day.

Yet even in his heyday of popular interest, he could seem mattingly opaque with much of his life unfolding behind the walls of his estates. Rockefeller often seems to be missing from his own biographies, moving through them like a ghostly, disembodied figure. When Random House proposed that I write the first full link biography of Rockefeller since the 1950s, I balked. How could one write about a man who made such a fetish of secrecy? When I told them that I couldn't write about Rockefeller unless I heard his inner voice, the music of his mind, as I phrased it, they brought me the transcript of an interview privately conducted with Rockefeller between 1917 and 1920. As I poured over this 1,700-page transcript, I was astonished. Rockefeller, stereotyped as taciturn and empty, turned out to be analytical, articulate, even fiery. He was also quite funny with a dry midwestern wit.

This wasn't somebody I had encountered in any biography. I was now eager to do the book. Even with such massive documentation, I had the frustrating sense that I was confronting a sphinx. Rockefeller trained himself to reveal as little as possible, even in private letters, which he wrote as if they might someday fall into the hands of a prosecuting attorney. The 20,000 pages of letters that Rockefeller received from his more outspoken business partners proved a windfall of historic proportions. They provided a vivid portrait of the company's Byzantine dealings with oil producers, refiners, transporters, and marketers, as well as railroad chieftains, bank directors, and political bosses. Like many moguls, Rockefeller was either glorified by partisan biographers who could see no wrong or vilified by critics who could see no right. This one-sidedness had been especially harmful in the case of Rockefeller, who was such an implausible blend of sin and sanctity. The story of John D. Rockefeller transports us back to a time when industrial capitalism was raw and new in America, and the rules of the game were unwritten. More than anyone else, Rockefeller incarnated the capitalist revolution that followed the Civil War and transformed American life. He embodied all of its virtues of thrift, self-reliance, hard work, and unflagging enterprise.

That was an excerpt from the book that I reread and the one I'm going to talk to you about today, which is Titan: The Life of John D. Rockefeller by Ron Chernow. I originally read this book a few years ago for episode 16. I didn't really know how to do a podcast back then, so I think it's too important of a book to understand the history of entrepreneurship to not redo again. The book is almost 700 pages. There's a lot to get to, so I'm going to jump right in. 90% of what I want to talk to you about today is going to be how he built Standard Oil. There's a few things in his early life that I think we have to cover first, so then it's easier for you and I to understand why he might have made the decisions he did as he builds one of the most valuable companies the world has ever seen. I want to jump to one, the sentence in the introduction that I think is extremely important because it describes one of Rockefeller's most important traits, and it says, "Once Rockefeller set his mind to something, he brought awesome powers of concentration to bear." And when I read that, it made me think of one of my favorite quotes from one of my favorite entrepreneurs, Edwin Land, the founder of Polaroid.

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