What better place to understand the thought processes of someone who has been very successful than a book they wrote early on on their way up the "ladder". With that thought in mind, I recently bought Bloomberg's old book "Bloomberg by Bloomberg". I bought the 1997 version so I got a earlier perspective of where he came from and how he got there. I found it very interesting how he got to where he was and his experiences at Solomon.
Being an investment guy, I'm always interested in successful investment peoples' pasts. Many, just like Bloomberg, weren't really highly focused students with clear career plans early on, but were in the right place at the right time. Some of the older ones will readily admit this, such as Bloomberg and Marks, but others paint a picture of calculated plans or just skirt the subject.
Between undergrad and grad school, I worked for a large company on Wall Street, Thomson McKinnon Securities, who went out of business in the early 1990's. Every era has large firms that rise and fall on Wall Street. While Thomson was a big firm that was national in scope, it wasn't an "white shoe" firm filled with ivy leaguers.
At the time, Thomson's offices were at 1 NY Plaza right near where the Staten Island Ferry docked in Manhattan. We occupied a few of the higher level floors of the building, but above us on the top several floors was the venerable (at the time) Solomon Brothers.
Thomson didn't have much of a cafeteria, so we often snuck up to Solomon's cafeteria where we could get a gourmet meal for next to nothing. I'm sure we stuck out like sore thumbs, since a lot of people working for Solomon, at that time, were ivy leaguers uniformly dressed in a white button down oxfords and a Brooks Brothers suits. Also, suspenders were the rage. Sometimes we were turned back by security officiers, but usually we got a great, inexpensive meal and enjoyed some gawking.
Shortly after leaving for grad school, the book "Liar’s Poker" came out about the crazy world of Solomon. Everyone was reading it and I couldn't believe all that stuff was happening at Solomon just above where I had worked. The culture had clearly changed since Bloomberg had been there. Often spoken about in the book was "The law of the jungle" that permeated the culture. It got progressively out of control in the years following when Buffett got stuck with the task of bringing it under control.
The Solomon story viewed from multiple books and perspectives is an interesting study in culture. Anyway, I digress. Bloomberg's book adds some color to how that culture had evolved since he arrived on the scene much earlier.
I am working through Bloomberg's book now and I found the following quote from the book to be interesting on he how thought about climbing the ladder to success. It provides a good perspective for those early on in their careers, whether it is the investment industry or whatever industry. Having many perspectives is important in the investment business and that's why it's good to continually read and absorb them. You may not agree with them all, but that is what perspective is all about.
"Life, I've found, works the following way: Daily, you're presented with many small and surprising opportunities. Sometimes you seize one that takes you to the top. Most, though, if valuable at all, take you only a little way. To succeed, you must string together many small incremental advances - rather than count on hitting the lottery jackpot once. Trusting to great luck is a strategy not likely to work for most people. As a practical matter, constantly enhance your skills, put in as many hours as possible, and make tactical plans for the next few steps. Then, based on what actually occurs, look one more move ahead and adjust the plan. Take lots of chances, and make lots of individual, spur-of-the-moment decisions."
- Michael Bloomberg, Bloomberg by Bloomberg
While those from the ivy leagues usually get a huge jump out of the gate because of their connections and perceptions of who they are, those who come from meager beginnings, with an ivy league degree or not, more often have the grit and hunger that leads them on alternative, but more difficult paths.
I never knew much about the history of Solomons prior to my time on Wall Street, but now I know more. Investing in general is similar. Many of the keys to the present can be found in the past. If you don’t know history, you’re condemned to repeat it.
Reading is fundamental. Read!
