#405 How Rockefeller Worked

The episode delves into the influential biography of John D. Rockefeller, discussing how he established what Charlie Munger referred to as the greatest company ever created. Rockefeller's view of business was combat-like; he communicated in code and kept his operations secretive. A crucial lesson from his father was to concentrate on one's own business, a concept Rockefeller embraced fiercely throughout his life. His obsession with numbers and meticulous nature led him to concentrate on every aspect of his business, which he believed was essential for achieving great success.

Rockefeller was also incredibly self-confident, exemplified by his willingness to negotiate with prominent figures like Cornelius Vanderbilt on his own terms. His methodical and patient approach characterized his business dealings, where he focused on organization and detail. He actively sought problems to solve, indicating a mindset that viewed challenges as opportunities for growth.

The narrative captures Rockefeller's early career, his relentless job search through canvassing firms, and how he leveraged technology to succeed in business ventures. He demonstrated a strong understanding of risk and was known as an exceptional borrower, which supported his growth strategies in refining oil. Rockefeller understood the importance of transportation in his operations and strategically located his refineries to optimize shipping costs.

The episode also addresses his commitment to detail, the art of leveraging partnerships, and the distinctive strategies that defined Standard Oil. Rockefeller's rise involved aggressive tactics like the 'Cleveland massacre,' through which he acquired numerous competitors and consolidated control of the market. Despite his ruthless practices, he maintained an image of patience and rationality.

Ultimately, the discussion emphasizes Rockefeller's belief in his cause as righteous, viewing his efforts as revolutionary for the oil industry. His legacy is framed within the context of applying organization and order to a chaotic industry, benefiting both his company and the economy at large, despite the controversies surrounding his methods.