In my last post, I wrote about the dangers of dependency: the narcotic effects of a regular paycheck and the false sense of security that comes from working for a corporation. Many RMITs never allowed themselves to get cornered in a corner office, embarking on an independent career right out of school (or during, or before). The best way to kick the habit, of course, is never to start. I found that those RMITs who did spend time in a gilded cubicle, however, looked at the experience in one of two ways: Some saw a stint in corporate life as an apprenticeship (or sometimes as indentured servitude)—an opportunity to learn everything they could. Others hit bottom, and found they just couldn’t go on putting all of their ideas and energy toward someone else’s vision. Some of these, like Bernard Jacobs, who cofounded Home Depot after he was fired from his job with the Handy Dan hardware chain, were forced to go cold turkey. But all of these recovering salary junkies told me something unexpected. What I’m about to say will sound counterintuitive at best, plain crazy at worst: Addiction is a good thing.
A stable salary can be addictive: like a drug, it feels good, helps you cope with the ups and downs of life, and it is near impossible to give up. But dependence on a salary is a major impediment to becoming the richest person in town. The regular fix of a paycheck from the other guy makes you risk-averse, and the ability to take risks is one of the qualities that defines an RMIT. It certainly defines Jon Huntsman, Salt Lake City’s richest man. His rags-to-riches trajectory is not uncommon among RMITs—in fact, growing up without advantages can be a huge advantage.
It was a beautiful weekend to sit atop the steps of Federal Hall, overlooking Wall Street in downtown Manhattan, while being interviewed by Maria Bartiromo for Wall Street Journal Report.The Richest Man in Town soared to the top finance title on Amazon as a result. Thank you, Maria.
One of the not-so-pretty laws of capitalism is that the new money calls the shots. It is not the creator of the genius idea or the smart manager who reaps the reward—it is the provider of the capital who gets rich. That is why another unwritten rule of M&A is “Shoot the founder.” All too often when lone-ranger founders, who think they can do it all, need—or are forced—to raise capital to get the business off the ground or to scale up, they quickly find themselves pushed out of the way, with nothing to do and as much to show for their efforts. Fully 94 percent of RMITS have the title “Founder” on their resumes; fewer than 20 percent, however, have taken their companies public.
Most who have retained ownership cite the short-term thinking of Wall Street as a key reason. When a company is forced to manage from quarter to quarter, as opposed to taking the long view, employees become commodities—and management becomes groupthink.
