I finally finished an incredibly long biography on John D. Rockefeller Sr. It was probably the best biography I’ve every completed. JDR was a fascinating and amazing person, not only in what he accomplished in business and philanthropy, but also in how he conducted himself in day to day life. His impressive accomplishments are too many to list in a short writing to do them enough justice, but here are some things I learned or found interesting.
Business Accomplishments
JDR built what was at the time the largest American oil refining company of its time – Standard Oil. At its peak it controlled roughly 90% of the refining in the country. It was eventually broken up as a monopoly. Many criticized its power and influence and tarred it as being unfair to the small business refiners. This was a new era in business however, and JDR built a single company the size of which America had never seen before. Even though it was criticized rightly as a monopoly, Standard did bring incredibly cheap kerosene to the masses, and really helped bring light, a thing of luxury for the wealthy, to the lower and middle classes. And with the new era of the automobile, cheaper oil certainly became a larger driver for the entire American economy, which Standard Oil could claim credit in. When finally broken up, the subsidiaries of Standard Oil became the companies of Exxon, Mobil, Chevron, Amoco, Marathon and others. An amazing list.
JDR became the richest man in the world (considered the richest person ever as a % of GDP) and demonstrated perhaps more than anyone before him, the power of COMPOUNDING. JDR would gladly buy and hold any shares of Standard Oil any other owner would offer to him. And he gladly advised any firm he was buying to take their payment in the form of Standard Oil shares and to hold them. Even when Standard was broken up by the regulators, JDR advised, “buy Standard Oil shares.” The era after the company was split proved immensely profitable to him actually as many of the subsidiary company stocks went up more than 5x. MANY years before he died (to my recollection roughly 15 years or so) he transferred the majority of his remaining money to his son – JDR Jr. – about $500M. He left himself with about $20M as he needed “relatively” little money as he was not much of large spender, and didn’t flaunt his wealth on massive luxuries. He was content living a relatively modest life, interacting with local towns people and church goers and getting in a round of golf. JDR Jr had the role and responsibility in directing the giving away of the family money in the years to come, with advice from Sr of course.
Character & Personal Demeanor
JDR was a very calm, and collected individual. He almost never became angry, and approached disagreements in a thoughtful, level-headed manner. He was incredibly comfortable with himself and didn’t feel the need to respond to critics, as he seemed at peace with who he was and how he conducted himself. Even when he was tarred by inaccurate reporting and rumors, JDR never felt the need to respond because he was comfortable knowing and believing he wasn’t the person the media or detractors portrayed. This was arguably a mistake, but I still find his ability to put his ego aside very admirable. He didn’t care what others thought, because to him, he knew the truth – a great lesson here.
JDR was more comfortable around lower class people, refusing to really ever rub shoulders with and embrace the true elite. He was more at home in small humble churches with regular people, refusing to join the wealthy elite clubs that his brother would find more appealing. He was a genuine family man. He didn’t smoke or drink, and preached to all his children not to do so. He was obsessed with staying healthy, exercising, getting into nature, and focusing on his own longevity. JDR enjoyed people and was very fair with business associates – paying his workers above average wages, and paying those he did business with what they thought was fair – even when he was buying other refineries that were competitors.
JDR was very generous, embracing charity towards others very early. At age 16 he was already giving away 6% of his wages to charity and others. He continued this his entire life, always believing that he owed a responsibility for being successful and seeking to help others. This led to many philanthropic efforts especially after he retired. He really set the template well before Bill Gates did towards a systematic effort to giving away his wealth in a very targeted and thoughtful manner. Much of his giving was quite anonymous. He didn’t seem to want really any credit for a charity’s success, and he often didn’t want to make a show of his gifts by hardly stepping foot in places he funded. A large ceremony and ribbon cutting ceremony celebrating him would have been absolutely out of the question. In the second half of his life (he basically retired in his early 50s – living to age 97) he focused his efforts primarily on giving away his wealth, and he had a team dedicated to vetting charitable efforts and running the philanthropies very thoughtfully. Over his years he gave away roughly $550M of his wealth.
Some of his numerous philanthropic efforts include:
- funded the founding of Spelman College (named after JDR’s wife) – the 4th Black female college in the US
- Spearheaded the funding of the University of Chicago
- founded the Rockefeller Institute for Medical Research, later Rockefeller University – this was a HUGE advance for science and medicine in the early 20th C – 23 Nobel Laureates came out of here
- helped eradicate hookworm disease in the American South
Overall, I highly recommend the book. The accomplishments of JDR are really too numerous to list here. The best part of a good biography, especially this one, is to see how the person deals with daily life, struggles, and year to year accomplishments, and how it changes them as a person. For the most part, JDR was fascinating because it seemed he was actually quite UNCHANGED from his struggles and massive accomplishments. He was always basically the same person with a grounded purposefulness about the way he went through life, always maintaining a steady demeanor, imparting life lessons to his friends and family, working to philanthropically share his success to help others, and also enjoying himself throughout his journey. His massive wealth hardly changed the way he really lived and approached the most common of people, and he always was conscious of his responsibility to do what he could to help others. I think that is a theme I’ve seen across other biographies from some of the other successful giants of history I’ve read such as Warren Buffett, Lincoln, Benjamin Franklin etc. As they become successful, they basically don’t change. They’re rooted in the qualities that made them successful in the first place. Their success only amplifies the qualities that they already possess, and if they’re good ones, they have a snowball effect for themselves and the people around them which continues to compound their life and wealth, literally and figuratively.
The behemoth company that Standard Oil would become certainly crowded out and was unfair to small competitors in numerous ways. But the wealth creation for not only JDR but hosts of others, along with the great strides the company made in regards to scientific research and bringing oil to the country, would have great far reaching influence and positives for the American economy for decades into the future. His numerous medical, scientific, and educational philanthropic efforts certainly did the same many times and generations over.