#324 John D Rockefeller (38 Letters Rockefeller Wrote to His Son)

John D. Rockefeller's Letters to His Son

• John D. Rockefeller wrote 38 letters to his son, John, over 30 years, offering advice and insights.
• These letters were not intended for publication, providing an unfiltered view of Rockefeller's beliefs.

Rockefeller's Philosophy on Success

• Rockefeller emphasizes the importance of competition and relentless determination in achieving success.
• He believes that retreat is surrender and that one must constantly strive to win.
• He advises his son to develop strength and self-reliance, stating that kindness and tenderness can be detrimental in a competitive world.
• He highlights the influence of parental status on a child's starting point in life, suggesting that those born into privilege have an advantage.
• He emphasizes the importance of hard work, constant learning, and building businesses to improve the lives of future generations.
• Despite his belief in the influence of parental status, Rockefeller himself was a poor boy who faced significant challenges in his youth.
• He stresses the importance of relentless self-belief and the idea that belief precedes ability.
• The text mentions a story about Rockefeller attending school in tattered clothes, demonstrating his self-confidence despite his circumstances.
• The main theme of the letters is for his son to have unwavering self-belief and the conviction that he can achieve great things.
• John D. Rockefeller, as a young boy, was told to leave a photograph because his tattered clothes were ruining the picture. This experience motivated him to become the richest man in the world.
• Rockefeller believed that hard work leads to success, contradicting the idea that a person's starting point is determined by their parents' status.
• Rockefeller's letters are filled with stories from his early life, including his first job, his first business, and his early days in the oil industry.
• Rockefeller's letters reveal his Napoleonic and Alexander the Great-like personality, emphasizing his ambition and drive.
• Rockefeller's use of present tense in his letters, even when discussing past events, is intriguing.
• Rockefeller, like Alexander the Great, recognized and utilized the talents of his enemies, even after defeating them.
• The story of Alexander the Great and Porus, an Indian king, highlights the respect that Alexander showed towards genuine excellence, even in a defeated enemy.
• Porus's response to Alexander's question about his audacity in challenging him demonstrates the relentless self-belief that drives successful individuals.
• The text discusses a conversation between Alexander the Great and a defeated opponent, highlighting Alexander's magnanimity in not killing his opponent but instead putting him to work.
• John D. Rockefeller, like Alexander, believed in building a company of founders, defeating competitors, and then making them partners if they were talented.
• Rockefeller, in his letter to his son John Jr., emphasizes that opportunities may be unequal, but success can be achieved regardless of starting point.
• He argues that individuals who have overcome poverty and hardship develop unique skills and resilience that can lead to great success.
• Rockefeller acknowledges that many wealthy children fail in life, and he aims to help his son avoid this fate by emphasizing the importance of hard work and resilience.
• The text highlights Rockefeller's deep love for his children and his belief that the most important knowledge to pass down is the value of hard work and overcoming adversity.

The "Shirtsleeves to Shirtsleeves" Phenomenon

• John D. Rockefeller, in a letter to his son John Jr., expresses his concern that the family's wealth and success may not guarantee the future success of his children and grandchildren.
• He explains that there's a pattern in human nature, often referred to as "shirtsleeves to shirtsleeves in three generations," where wealth accumulated by a hard-working individual is often lost by their descendants.
• Rockefeller believes that children of wealthy families may take their advantages for granted and fail to develop the skills necessary for survival, while those from poorer backgrounds are forced to develop their abilities and seize opportunities to improve their lives.
• He reveals that he deliberately concealed his wealth from his children when they were young, instilling values of frugality and personal struggle.
• Rockefeller emphasizes that true happiness comes from building something and being proud of one's accomplishments, not from simply consuming wealth.
• He encourages his son to develop his own path and not rely solely on his family's legacy, emphasizing the importance of factors like ability, attitude, character, ambition, method, experience, and luck in achieving success.
• He concludes by stating that "privileged but powerless people are a waste while the educated but unaffected people are a pile of worthless garbage," urging his son to find his own way and pursue his own goals.

Rockefeller's Views on Luck and Planning

• John D. Rockefeller admired Cyrus McCormick, the inventor of harvesting machines, for his business acumen and ability to turn his invention into a profitable enterprise.
• Rockefeller believed that McCormick's success was not solely due to luck but rather a result of careful planning and design.
• He shared Napoleon's view on luck, stating that "luck is the remnant of design" and that individuals create their own luck through their actions.
• Rockefeller emphasized that everyone is the architect of their own destiny and that success is not a matter of chance but rather a consequence of planning and execution.
• He used the example of the Cleveland Massacre, where he became the largest oil refiner in the United States at the age of 25, to illustrate how he manipulated luck through strategic planning.
• Rockefeller's plan involved turning competition in the oil industry into cooperation, which ultimately led to his success.
• He believed that a good plan could successfully influence luck and that waiting for luck to happen was not a viable strategy.

Rockefeller's Domination of the Oil Industry

• John D. Rockefeller believed that to be successful in the oil industry, he needed to control it. He saw the industry as a battlefield and himself as a commander.
• Rockefeller's goal was to conquer the oil industry by acquiring his competitors. He used a strategy of targeting the strongest competitor first, believing that this would cause the weaker competitors to fall like dominoes.
• Rockefeller's first target was Clark Payne, a well-known and ambitious company in Cleveland. He offered to buy the company for $400,000, knowing it was not worth that amount.
• Rockefeller's goal was to gain the title of the world's largest oil refinery and to bring together the refiners in Cleveland under his control.
• This strategy proved successful, and within two months, 22 other competitors were under the leadership of Standard Oil.
• John D. Rockefeller, the oil tycoon, believed in planning for luck rather than relying on chance. He emphasized the importance of knowing your goals and resources, and then using those to design your path to success.

Rockefeller's Passion for Work

• Rockefeller believed that work should be enjoyable, not a chore. He found immense happiness in his work and saw it as a privilege. He believed that people who truly love their work are more likely to succeed.
• Rockefeller celebrated his "job day" every year, marking the day he got his first job. This demonstrates his deep appreciation for work and his belief in its importance.
• Rockefeller's first job as a bookkeeper taught him valuable lessons about numbers, facts, and the power of the transportation industry. He saw it as an opportunity to exercise his abilities and gain experience in business.

The Importance of Action and Overcoming Doubt

• John D. Rockefeller emphasized the importance of self-belief and a positive mindset in his letters to his son. He used the analogy of stonemasons to illustrate this point, highlighting the difference between those who simply "chisel stone" and those who see their work as a "work of art."
• Rockefeller believed that opportunity arises from taking action. He encouraged his son to "do and to do again, ever to do again," emphasizing that inaction leads to missed opportunities.
• He cautioned against procrastination and the trap of over-planning, stating that "action solves everything." He believed that fear is a natural part of life and that taking action despite fear is essential for success.
• Rockefeller highlighted the importance of learning from successes and focusing on what works. He believed that smart people are not afraid of failure but rather use it as a learning opportunity to improve their approach.
• The text connects Rockefeller's philosophy to a quote by Charlie Munger, "the fundamental algorithm of life: repeat what works." Both emphasize the importance of learning from experience and focusing on what yields positive results.

Charlie Munger's "Fundamental Algorithm of Life"

• Charlie Munger's "Fundamental Algorithm of Life": Charlie Munger, a renowned investor and business partner of Warren Buffett, emphasizes the importance of repeating what works. He advises finding CEOs who have successfully held the position before, rather than focusing on unproven talent.

The Importance of Action and Overcoming Doubt (Continued)

• The Importance of Action: John D. Rockefeller, in his letters to his son, stresses the need for action and not waiting for perfect conditions. He argues that waiting for everything to be perfect leads to a mediocre life and missed opportunities.
• Overcoming Doubt and Failure: Rockefeller acknowledges that periods of doubt and low confidence are normal. He emphasizes that even the most successful people experience these challenges. The key is to persevere and learn from failures.
• Passive vs. Active Approach: Rockefeller contrasts passive individuals who avoid action and blame themselves with those who embrace action and see failure as an opportunity for growth. He highlights that true success comes from taking action, not just planning.
• The Power of Habits: Rockefeller emphasizes the importance of developing good habits, particularly the habit of taking action. He compares habits to ropes, stating that they can either lead to success or failure. He encourages readers to break the habit of procrastination and embrace the habit of "doing it now."

Overcoming Fear of Failure and Debt

• John D. Rockefeller, in a letter to his son, emphasizes the importance of taking action and overcoming fear of failure. He encourages his son to cultivate the habit of action and to view borrowing money as a tool to seize opportunities, rather than a source of fear.
• Rockefeller shares his own experience of overcoming his fear of debt and using it to achieve success in his early career. He emphasizes that he viewed debt as a way to expand his business and control the oil refining industry in Cleveland.
• He also highlights the importance of honesty and transparency in business dealings. He emphasizes that his honesty and willingness to lay all his cards on the table with his creditors helped him build trust and secure funding.
• Rockefeller's advice to his son is to focus on the desire to win and to not let the fear of failure hold him back from pursuing opportunities. He believes that honesty and a willingness to take calculated risks are essential for achieving success.

The Power of Honesty and Turning Problems into Opportunities

• John D. Rockefeller believed in the power of honesty and used it as a strategy in his business dealings. He recounted a time when his oil refinery caught fire and he needed a loan. Despite the situation, he was honest with the bank directors, and one of them, Mr. Stillman, recognized his integrity and urged the others to lend him the money.
• Rockefeller believed that problems are opportunities in disguise. He encouraged his son, John, to view failures as opportunities for growth and to learn from them. He shared his own experience of a failed business venture involving beans, where he used the setback to his advantage by advertising his ability to provide large prepayments and supplies, ultimately leading to a profit.
• Rockefeller emphasized the importance of resilience and persistence in the face of adversity. He used the example of Abraham Lincoln, whom he admired for his perseverance despite numerous failures, to illustrate the point that setbacks are inevitable but should not be seen as insurmountable obstacles.
• He encouraged his son to learn from failures, draw success factors from his experiences, and use innovative methods to start anew. He believed that failure is a learning experience and that it can be turned into a stepping stone rather than a tombstone.

The Importance of Self-Belief and Overcoming Disbelief

• John D. Rockefeller draws a parallel between Abraham Lincoln's perseverance and his own, highlighting Lincoln's resilience in the face of setbacks.
• Rockefeller emphasizes the importance of self-belief and its role in achieving success. He believes that strong self-confidence is crucial for overcoming challenges and achieving goals.
• He asserts that faith, rather than failure, is the true father of success, and that sustained victory is a habit cultivated through unwavering belief in oneself.
• Rockefeller warns against the negative impact of disbelief, stating that it can lead to mediocrity and a shrinking sense of self-worth.
• He encourages his son to replace thoughts of failure with the belief in success, reminding him to always believe in his own abilities and never underestimate his potential.
• Rockefeller concludes by emphasizing the importance of self-development and growth, stating that those who achieve greatness consistently pursue a plan for personal improvement.

Rockefeller's Cynical View of Human Nature

• John D. Rockefeller believed that personal interest is a driving force in human nature, leading people to prioritize their own gain. He saw this as a constant struggle, where everyone is potentially an enemy, even oneself.
• Rockefeller's experiences in the oil refining industry, particularly in Cleveland, reinforced his cynical view. He encountered betrayal and deception from those he had helped, leading him to believe that trust is a dangerous luxury in business.
• Despite his cynicism, Rockefeller still valued friendship, sincerity, and kindness. However, he believed that these qualities were often exploited in the pursuit of profit.
• Rockefeller's advice to his son emphasized the importance of self-reliance and preparedness for deception. He believed that guarding oneself against manipulation was essential for survival in a world driven by self-interest.

Rockefeller's Competitive Drive and Rivalry with Mr. Potts

• Rockefeller's competitive drive was evident in his dealings with Mr. Potts, whom he saw as a threat and ultimately sought to neutralize. He believed in eliminating competition and incorporating formidable individuals into his own organization.
• John D. Rockefeller describes a situation where a young man in a car challenged him on the golf course, provoking his competitive nature. He enjoyed the feeling of victory after winning the competition.
• Rockefeller compares his competitive spirit to Tiger Woods, who said the best feeling is beating everyone.
• Rockefeller recounts a business rivalry with Mr. Potts, the president of the Empire Transportation Company, a subsidiary of the Pennsylvania Railroad Company.
• Mr. Potts, working for the Pennsylvania Railroad Company, attempted to take control of the oil refining industry by merging two major oil pipelines into their railway network.
• Rockefeller saw Mr. Potts as an enemy and believed in reaching his goals before others. He established the US Transportation Company to counter Mr. Potts's efforts.
• Rockefeller admired Mr. Potts's courage but was determined to drive him out of the oil refining industry.
• Rockefeller confronted Mr. Scott, the owner of the Pennsylvania Railroad Company, about Mr. Potts's actions, but Mr. Scott was stubborn and allowed Mr. Potts to continue.
• Rockefeller launched a multi-pronged attack against the Pennsylvania Railroad Company, including terminating business dealings, transferring transportation business to competing railway companies, and closing refineries that relied on the Empire Transportation Company.
• Rockefeller's aggressive tactics ultimately weakened the Pennsylvania Railroad Company, a company that had never been conquered before.

The Pennsylvania Railroad Strike and Rockefeller's Alleged Role

• John D. Rockefeller was involved in a conflict with the Pennsylvania Railroad Company, which led to a strike by workers.
• The workers, angered by wage cuts, burned hundreds of tankers and locomotives, forcing the company to seek an emergency loan from Wall Street.
• Rockefeller allegedly orchestrated the situation by squeezing the company and fueling the workers' anger, leading to the destruction of company assets.
• Rockefeller believed that the company's leader, Mr. Potts, was too stubborn and arrogant, which ultimately led to his downfall.
• Rockefeller admired Mr. Scott, the head of the Pennsylvania Railroad Company, for his willingness to compromise and make peace after the conflict.
• Rockefeller believed that arrogance leads to failure and that losers often make excuses for their shortcomings.
• He advised his son to avoid making excuses and to focus on developing enthusiasm for business, as it is a key factor in success.

The Importance of Enthusiasm and a Positive Attitude

• John D. Rockefeller emphasizes the importance of interest and enthusiasm in achieving success. He believes that the outcome of endeavors is often proportional to one's enthusiasm.
• Rockefeller advises his son to cultivate a positive and cooperative attitude, emphasizing that talent alone is not enough for success. He encourages his son to develop an "I will win" attitude and to actively use his intellect to create and find ways to succeed.
• Rockefeller believes that carefully prepared plans and actions are what people often call luck. He emphasizes the importance of cause and effect and discourages making excuses for pursuing career success.
• Rockefeller advises a young man seeking to become rich to firmly believe in himself as his greatest capital. He emphasizes the importance of faith and overcoming doubt, stating that one cannot achieve what they do not believe in.

Rockefeller's Ambition and the Connection Between Wealth and Goals

• Rockefeller shares a conversation with his son about Henry Ford, highlighting Ford's ambition and determination. He admires Ford's ability to turn a luxury item (cars) into a necessity accessible to almost everyone.
• Rockefeller emphasizes the connection between wealth and ambition, stating that wealth is directly proportional to one's goals. He uses his own experience as an example, stating that his ambition to be the richest person in the world fueled his efforts.
• Rockefeller concludes by emphasizing that second place is no different from last place, highlighting his unwavering drive for success.

Rockefeller's Pivotal Decision to Enter the Oil Industry

• John D. Rockefeller, at 96 years old, wrote a letter to his son reflecting on a pivotal moment in his life that occurred 70 years prior.
• This moment involved Rockefeller's decision to enter the oil industry, which he considered the most decisive adventure in his life.
• He was initially convinced by Mr. Andrews, an expert in lighting, that kerosene would revolutionize the lighting industry.
• Rockefeller and his partners invested $4,000 in an oil refining business, which quickly became more profitable than their agricultural ventures.
• Rockefeller's partner, Mr. Clark, was hesitant about expanding the business and became an obstacle to Rockefeller's ambitions.
• Rockefeller decided to break up with Mr. Clark and secretly secured support from Mr. Andrews and a bank.
• He then proposed auctioning the company to the highest bidder, which he describes as a thrilling gamble that involved his entire life.
• The auction resulted in a significant profit for Rockefeller, marking a turning point in his career and the beginning of his dominance in the oil industry.

Rockefeller's Sense of Freedom and Self-Confidence

• John D. Rockefeller describes a pivotal moment in his life when he purchased a business for $72,500. He felt a sense of freedom and accomplishment, becoming his own master and no longer having to answer to others.
• Rockefeller emphasizes the importance of self-belief and self-confidence. He believes that a strong sense of self is essential for success and that it allows one to remain indifferent to external opinions.

Rockefeller's Views on Cooperation and Patience

• Rockefeller highlights the importance of cooperation within a company. He believes that a company's success is dependent on the cooperation of its employees and that everyone is inherently selfish and loyal to themselves.
• Rockefeller emphasizes the importance of patience and tolerance for pain. He believes that those who can endure hardship are able to achieve greater things.

Rockefeller's Relationship with Mr. Clark and His Complex Personality

• Rockefeller describes his relationship with Mr. Clark, a business partner he disliked. He describes Mr. Clark as pretentious and shortsighted, but he chose to ignore his provocations and focus on his own success.
• Rockefeller is described as having a ruthless competitive spirit but also a strong sense of self-control. He is portrayed as a good father, husband, and philanthropist, demonstrating a complex and multifaceted personality.

Rockefeller's Leadership Style and Perseverance

• John D. Rockefeller was a very successful businessman who was known for his calm demeanor and ability to handle difficult situations. He never lost his temper and treated his employees with respect, which was rare for business leaders of his time.
• Rockefeller believed in the importance of perseverance and resilience. He emphasized that success is a continuous process, like a cow giving birth and immediately becoming pregnant again. He believed that the end of one journey is just the beginning of another.
• Rockefeller admired Andrew Carnegie, another successful businessman, for his tireless work ethic and ambition. He believed that Carnegie's mantra, "the end is just the beginning," was a powerful reminder that success requires constant effort.
• Rockefeller advised his son to surround himself with positive and ambitious people who are committed to their goals. He warned against negative people who may try to sabotage their success.

The Importance of Listening and Creating a Positive Environment

• Rockefeller believed that great leaders should listen more than they speak. He emphasized the importance of creating an environment where people feel comfortable sharing their thoughts and ideas. By listening attentively, leaders can gain a deeper understanding of the issues, gather more information, and have more time to organize their thoughts.
• John D. Rockefeller emphasizes the importance of listening attentively to others before responding, believing it fosters a more receptive environment for sharing opinions.
• He advocates for matching employees with tasks they are passionate about, believing that enthusiasm leads to greater productivity and value creation.
• Rockefeller highlights the power of respect as a motivational tool, drawing a parallel to Mary Kay's philosophy of treating everyone as if they have an invisible sign saying "Make me feel important."
• He emphasizes the lasting impact of kind words and appreciation, suggesting that employees remember gestures of respect more than financial rewards.

Rockefeller's Optimistic Attitude and Overcoming Challenges

• Rockefeller shares a story from Carl Jung about a man who lost his chickens in a flood but remained optimistic because he had recently started raising ducks. This story illustrates the importance of maintaining a positive attitude even in challenging situations.
• The text discusses John D. Rockefeller's optimistic attitude and how he used it to overcome challenges. It uses an example of a neighbor warning him about rising water levels, to which Rockefeller responds with a positive outlook, saying he hopes the water rises so he can clean his windows.

Recommendations for Further Learning

• The speaker recommends buying the book mentioned in the video, which will support the podcast.
• The speaker also recommends several other episodes of the "Founders" podcast that delve deeper into John D. Rockefeller's life and the Rockefeller family dynasty. These episodes include:
  • Episode 307: World's Great Family Dynasties
  • Episode 254: John D. Rockefeller: Founding Fathers of the Rockefellers
  • Episode 248: John D. Rockefeller: Based on the biography "Titan"
  • Episode 247: Henry Flagler (Rockefeller's partner)
  • Episode 148: John D. Rockefeller's Autobiography
  • Episode 16: The first episode about "Titan"

Introduction to Founders Notes

• The speaker then introduces "Founders Notes," a platform that allows users to search and access highlights from books by successful entrepreneurs.
• The speaker highlights two key features of "Founders Notes":
  • The search function, which allows users to search for specific keywords and see what various entrepreneurs have said about them.
  • The "Highlights Feed," which provides a randomized stream of quotes and insights from different entrepreneurs.
• The speaker emphasizes that "Founders Notes" is a valuable tool for those already running successful companies.

Key Features of Founders Notes App

• The speaker highlights three key features of the Founders Notes app: negotiation skills, books, and favorites.
• The speaker emphasizes the value of the "books" feature, allowing users to store and access highlights from various books, including Mike Bloomberg's autobiography.
• The "favorites" feature enables users to create a curated feed of their most valuable insights and highlights from different books.
• The speaker believes that Founders Notes is a valuable tool for successful entrepreneurs, providing a centralized repository of knowledge and ideas.
• The speaker encourages listeners to try Founders Notes for a year and see if it benefits them.
• The speaker provides the website address for Founders Notes: Foundersnotes.com.