Hetty Green: The 'witch' of Wall Street

The episode begins by introducing Hetty Green, who lived in New York City in the late 1800s and was known as the richest woman in America. Despite her wealth, she was labeled a miser and earned the nickname 'Witch of Wall Street.' Green was a pioneer in value investing, and her legacy includes being a significant financier in times of economic distress. The hosts discuss her early life, her upbringing as a Quaker, and her interest in finance, which developed through her close relationship with her grandfather.

Hetty's financial journey started with her managing her own investments upon inheriting wealth after family tragedies. She became adept at purchasing undervalued government bonds during post-Civil War financial turmoil, realizing great profits as their value increased. Her success continued in real estate, where she acquired properties through foreclosures, neglecting to maintain them while waiting for their value to appreciate.

In addition to her business acumen, Hetty faced various controversies, including a famous robbery incident involving her son’s injury due to her reluctance to pay for medical care. The episode highlights her complicated relationship with her husband, Edward Green, and her eventual separation which stemmed from financial disputes. Hetty gained a reputation for being miserly while simultaneously providing loans to individuals and municipalities in financial crisis, notably aiding New York City during multiple financial panics.

Green's death in 1916 left a colossal fortune, valuing between $100 million to $200 million today, and raised discussions about her impact and legacy in finance, particularly for a woman in her time. Overall, Hetty Green's story reflects themes of gender, wealth, and the complexities of public perception, showcasing her as both a business pioneer and a misunderstood figure.