Hetty Green, known as the "Witch of Wall Street," defied the stereotypes of the Gilded Age, amassing a fortune through shrewd investments in railroads, real estate, and government bonds, while living frugally and independently. Author Janet Wallach's biography of Green reveals a woman who, despite being cast aside as a child, became a financial titan by adhering to principles of common sense, hard work, and a contrarian investment strategy—buying low when others sold in fear and selling high when others bought in greed. Hetty's wealth, equivalent to over $2 billion today, was built on a foundation of meticulous research, a keen understanding of market cycles, and an unwavering commitment to her own judgment, making her a role model for investors like Claude Shannon, who studied her methods. Green's aphorisms and life lessons, such as watching pennies and the importance of self-reliance, underscored her belief in the power of financial prudence and independence.
"A passerby might say she looked as poor as a church mouse, but her clothes were merely a costume to conceal her incredible wealth. Hetty Green was the richest woman in America. She was the smartest woman on Wall Street, a financial genius, a railroad magnet, a real estate mogul, a gilded era renegade."
This quote introduces Hetty Green's wealth and her intentional modest appearance, setting the stage for her character as a wealthy yet unassuming financial genius.
"She did not employ workers to slave wages, did not steal land from the public or outsmart stockholders or pay off government officials. She did not scheme with Wall Street or speculate with other people's money."
This quote emphasizes Hetty Green's ethical approach to business, contrasting her methods with the less scrupulous tactics of her contemporaries.
"Her holdings ranged from mortgages in real estate, New York, to dozens of buildings in downtown Chicago. Gold, copper, and iron mines out west, diamonds and pearls, railroads and government bonds."
This quote details the extent of Hetty Green's investments, highlighting her diversified approach to wealth accumulation.
"By the time she died in 1916, she was worth $100 million, the equivalent of more than $2 billion today."
This quote provides a sense of Hetty Green's immense wealth at the time of her death, underscoring her significance as a financier.
"Before deciding on an investment, seek out every kind of information about it."
This quote captures Hetty Green's thorough approach to investments, advocating for extensive research before committing funds.
"With his eyesight failing, he handed the evening newspapers to Hetty and asked her to read aloud in her child's voice. She called out the stock quotations and commerce reports."
This quote illustrates how Hetty Green's early life experiences, such as reading stock quotations for her grandfather, shaped her understanding of business.
"She paid attention when he repeated again and again that property was a trust to be taken care of and enlarged for future generations."
This quote reflects the financial values Hetty's father imparted to her, which played a crucial role in shaping her investment philosophy.
"I find it fascinating to go back and read about times of great human struggles... financial crisis, and the book almost becomes repetitive, and you just realize it's the whole thing that we talk about all the time, that history doesn't repeat. Human nature does."
This quote highlights the recurring patterns in financial history and the human behaviors that drive them, which were key to Hetty Green's success during such times.
"Hetty Robinson would later do the same. So she was a master at studying what happened before her, so she wouldn't make the same mistakes."
This quote highlights Hetty Robinson's strategy of learning from past financial events to avoid making similar investment mistakes.
"A few clever men like Russell Sage, a future role model for Hetty, kept substantial amounts of cash on hand and used it to buy stocks at rock bottom prices."
The quote explains how Russell Sage's strategy of maintaining liquidity during a crisis allowed him to purchase undervalued stocks, a tactic also adopted by Hetty Robinson.
"In future times, Hetty would always keep cash available and use it to buy when everyone else was selling."
The quote emphasizes the importance of having cash reserves to take advantage of investment opportunities when the market is in a state of panic.
"Hetty appealed to her father for her share in the inheritance... But Edward insisted he knew how to invest the money, make it grow."
This quote details the family dynamic where Hetty's father retained control over the investment of the family wealth, despite Hetty's capability to manage it herself.
"I buy when things are low and nobody wants them. I keep them until they go up and people are crazy to get them."
Hetty Robinson's quote succinctly captures her investment philosophy of contrarian investing, which contributed to her financial success.
"By the end of the year in London, her profits reached $1.25 million."
This quote demonstrates the effectiveness of Hetty Robinson's investment strategies, as she was able to amass significant profits through her financial acumen.
"I believe in getting in at the bottom and out at the top."
The quote reiterates Hetty Robinson's investment strategy of timing the market to maximize profits by buying low and selling high.
"I like to buy railroad stock or mortgage bonds. When I see a good thing going cheap because nobody wants it, I buy a lot of it and tuck it away."
This quote illustrates Hetty's approach to investing, which is to purchase undervalued assets and hold them for future gains.
"Even Commodore Vanderbilt had been badly hurt on the day of the crash... But Vanderbilt bought his stocks in cash and was able to wait out the market."
This quote emphasizes the advantage of having a cash position during market downturns, allowing investors like Vanderbilt to weather the storm.
"Watch your pennies, and the dollars will take care of themselves."
Hetty's advice to her children reflects her belief in financial prudence and attention to detail in managing money.
"Getting rich requires one set of skills. Staying rich requires another set of skills."
This quote delineates the different competencies needed for wealth creation versus wealth retention, highlighting Hetty's proficiency in both.
"Hetty Green put her money in the race. The railroad's dynamic potential, their promised return on capital, their unregulated operation, and their untaxed profits provided infinite possibilities for financiers."
This quote explains why Hetty was attracted to railroad investments, citing their potential for high returns and favorable operating conditions.
"Hetty moved in silence, which I think is smart."
The note to self indicates the speaker's admiration for Hetty's ability to keep her investment strategies and decisions private.
"She clipped her coupons for dividends, read her newspapers thoroughly scoured trade papers, perused periodicals, checked pertinent journals."
This quote describes Hetty's meticulous approach to gathering information before investing, showcasing her thorough work ethic.
"She moved like a nomad from boarding houses to flats to hotels... changing her name, evading the press, the public, and also the taxman."
This quote highlights Hetty's strategic approach to her living arrangements, which was aligned with her financial priorities.
"In true Hetty style, she sold her stock for $127.50."
This quote illustrates Hetty's negotiation skills, where she managed to sell her shares at a significantly higher price than the market value.
"Before he could captain his future along the track, the time had come for him to see his operations from the inside."
The quote signifies Hetty's belief in practical experience as a foundation for effective management and investment in a particular industry.
"I have observed that many a tattered garment hides a package of bonds, and that gorgeous clothing does not always cover a millionaire."
This reflection from the new bank's president upon meeting Hetty reinforces the idea that appearances can be deceiving, and true wealth may be hidden behind a modest exterior.
"Hetty told her daughter. But if it wasn't for his father, the world wouldn't know a thing about him. He has never earned a dollar and doesn't know the value of money."
This quote illustrates Hetty's belief that personal achievement and understanding the value of money are important, and she disapproves of those who rely on their family's name or wealth.
"Now you're fighting Hetty Green, the mother. You harm one hair on Ned's head, and I'll put a bullet through your heart."
The quote emphasizes Hetty's protective nature over her son and her willingness to confront threats directly, blending her roles as a businesswoman and a mother.
"I sent you to Texas to learn the railway business, Hetty said. I can't teach you by telegraph from New York."
Hetty's quote to her son about learning the railway business on his own underscores her belief in hands-on experience and independence in learning and decision-making.
"More companies die from indigestion than starvation."
This quote, reflecting on David Packard's wisdom, highlights the idea that excessive growth and lack of financial prudence can be more detrimental to businesses than a scarcity of resources.
"Her strategy on land was to let the weeds grow while others planted flowers."
The quote describes Hetty's strategic patience in real estate investment, allowing her to benefit from market appreciation while minimizing expenses.
"She used her intelligence to increase her wealth, her independence to live as she wished and her strength to battle anyone who stood in her way."
This quote encapsulates Hetty's approach to her business and personal life, using her intellect and independence to achieve success and overcome obstacles.
"Always buying when everyone wants to sell and selling when everyone wants to buy."
Hetty's quote reveals her contrarian investment philosophy, which involves going against market sentiment to capitalize on opportunities others might miss.
"Every real estate deal which I could possibly close up was converted into cash."
The quote shows Hetty's foresight and strategic decision-making in anticipating market downturns and protecting her wealth by liquidating assets at the right time.
"Don't cheat in our business dealings, for sooner or later, your conscience will trouble you and you will worry yourself into your grave."
This piece of advice from Hetty underscores the long-term importance of integrity and conscience in business dealings.
"I enjoy being in the thick of things. I like to have a part in the great movements of the world, and especially of this country."
Hetty's quote reflects her passion for being actively involved in significant business and societal movements, finding fulfillment in her work.
"A millionaire a hundred times over. She had made her mark besides Carnegie and Morgan, Vanderbilt and Rockefeller."
The quote summarizes Hetty's remarkable success and her standing among the most prominent figures in American financial history.