Today I am writing about Andrew Carnegie for Personal Finance. Andrew Carnegie was a very successful man from the 1800s.
Andrew Carnegie was born in Scotland in a small weaver’s cottage with another family living in the same house. The family that he was born into was very poor as was the family living in the house with them. In 1848 Carnegie immigrated to Pennsylvania, when hard times hit Scotland. Starvation was a major threat in Scotland at this time.
When Carnegie was 13 years old he took a job changing spools of thread in a cotton mill 12 hours a day 6 days a week, for about 20 cents a day. At 15 Carnegie became a telegraph messenger boy for about $2.50 a week. At 18 he began ascending through the ranks of the Pennsylvania Railroad Company, and he became a division superintendent.
When Carnegie was an adult a mentor taught him the importance of Financial Investments. The mentor eventually helped Carnegie make his first investment. Soon Carnegie’s investments began to pay off, and in 1864 he began investing in oil. With oil he began to make a ton of money and he kept investing in it.
Once the war between the States, Carnegie began to focus on iron and steel. At that time iron and steel was a very good investment and when you invest in these as well as oil you have a tremendous profit at this time.
Andrew Carnegie practiced Vertical Integration. This is where you buy the companies that you need to provide your materials. This way you don’t have to deal with many problem with people in the company.
Andrew Carnegie was known for saying, “Watch the costs and the profits will take care of themselves.”
Andrew Carnegie ended up donating $365 million which is equal to roughly $5 billion in today’s money.
Until next time, your friendly neighborhood Homeschooler…