Founders
Episode 237 #237 Julio Lobo (Cuba’s Last Sugar Tycoon)
Founders

Episode 237: #237 Julio Lobo (Cuba’s Last Sugar Tycoon)

Founders

Episode 237

#237 Julio Lobo (Cuba’s Last Sugar Tycoon)

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading The Sugar King of Havana: The Rise and Fall of Julio Lobo, Cuba's Last Tycoon by John Paul Rathbone.

What I learned from reading The Sugar King of Havana: The Rise and Fall of Julio Lobo, Cuba's Last Tycoon by John Paul Rathbone.

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[2:02] Beyond Possible: One Man, Fourteen Peaks, and the Mountaineering Achievement of a Lifetime (Founders #236)

[3:22] This is a cautionary tale.

[6:18] One of the main lessons of the book is just how fast things can change.

[6:25] The History of Cuba in 50 Events

[10:14] Lobo walked with a limp due to a murder attempt 14 years before that had blown a four inch chunk out of his skull.

[12:29] One of the most human of all desires is to perpetuate what you have created.

[12:55] Lobo thinks he has leverage when he really doesn’t.

[18:39] He dies in poverty. Imagine having $5 billion and then at the end of your life having to rely on an allowance from your adult daughters.

[20:30] I think about what Charlie Munger says: Don't try to be really smart. Just try to be consistently not dumb over a long period of time.

[20:58] Hershey: Milton S. Hershey's Extraordinary Life of Wealth, Empire, and Utopian Dreams (Founders #146)

[22:59] Chico, I was born naked. I will probably die naked. And some of the happiest moments of my life happened when I was naked.

[29:01] From an early age it was apparent that Lobo sought not only wealth but glory too.

[30:21] He was an individualist who did not spare himself any sacrifice to attain his objectives.

[31:26] The clearest path to wealth is building a business that benefits somebody else's life. Make a product or service that makes somebody else's life better. Do that for a long period of time and keep improving it.

[33:45] His father told him I would much rather you make your mistakes now than later when I may not be around to pick up your pieces.

[38:16] It turns out that almost being executed makes you impatient for large success.

[40:32] If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so. Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game. And the fact that a given asset has appreciated in the recent past is never a reason to buy it. —Warren Buffett from The Essays of Warren Buffett (Founders #227)

[45:09] Think about the type of funeral you want. There is a story about a person who died. The minister said it is now time to say something nice about the deceased. After long time a person came up and said, “His brother was worse.” That is not the kind of funeral you want. —Charlie Munger

[50:34] Alfred Nobel: A Biography (Founders #163)

[52:30] The Fish That Ate the Whale: The Life and Times of America's Banana King(Founders #37)

[54:26] They almost resorted to a duel, which was still common in Cuba at the time, where differences were often settled with machetes at dawn.

[1:04:34] There are times when chasing the things money can buy, one loses sight of the things which money can't buy and are usually free.

[1:05:10] The Almanack of Naval Ravikant: A Guide to Wealth and Happiness (Founders #191)

[1:05:17] A calm mind, a fit body and a house full of love, these things cannot be bought, they must be earned. —Naval Ravikant

[1:08:52] His business collapsed like a house of cards.

[1:09:34] It was the same ending that befell so many other famous speculators throughout history.

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#237 Julio Lobo (Cuba’s Last Sugar Tycoon)

Introduction

Cuba has known many rich men since Christopher Columbus first introduced sugarcane to the island. Tomás Terry, the most successful sugar planner of Cuba's colonial years, left $25 million on his death in 1886. Not bad considering that then the richest man in the world, William Astor, left just $50 million. Yet Cuba does not have to look back more than a century to find extreme riches. In Havana today, to have Croesus-like wealth is referred to be as rich as Julio Lobo. Julio Lobo was the richest man in Cuba before Castro's revolution did away with such men.

Lobo's life frames the 60-odd years of the pre-revolutionary Cuban Republic. He was born in 1898, the year that Cuba won independence after 30 years of fighting against Spain, and he left the country in 1960, 2 years after Castro's guerillas came down from the hills. In his heyday, Lobo was known as the king of sugar, not just of Havana but of the world, with an estimated personal fortune of $200 million, about $5 billion in today's dollars. Yet, he was also a financier of such talent that Castro's government, which was Communist, asked Lobo, a full-blooded capitalist, to work for them after the revolution had begun. So Lobo captures the period's contradictions, too. Lobo's life has the explosiveness of a Hollywood movie. He swam the Mississippi as a young man. He fenced in duels. He survived assassin's bullets, and he was put against the wall to be shot but pardoned at the last moment. He courted movie stars, raised a family, and made and then lost 2 fortunes.

That is an excerpt from the book I'm going to talk to you about today, which is The Sugar King of Havana: The Rise and Fall of Julio Lobo, Cuba's Last Tycoon, and it was written by John Paul Rathbone. So it's funny, on the last podcast, I did on the book Beyond Possible, which was written by a very inspiring figure named Nims Purja, this mountaineer and special forces operator from Nepal. Something Nims said in the book where he's climbing mountains, and he passes -- actually, I'm just going to read the excerpt for you real quick in case you missed it. He says there was -- he's climbing one of the highest mountains in the world, and he says there's a number of unpleasant reminders of the harsh and unforgiving nature of life at high altitude.

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