Trader Thomas Rowe Price

Thomas Rowe Price is the creator of the financial giant T. Rowe Price Associates, which operates successfully even after the death of its creator.
Thomas Rowe Price's company has brought and continues to generate income for millions of investors around the world, and Price himself has become a role model for thousands of novice investors.

It was the life path of an unknown chemist who was able to create a major Hedge fund without any specialized education, it simply cannot but surprise. It is with the biography and success story of this amazing person that you will get acquainted in this article.

Thomas Rowe Price was born back in 1898 in the Maryland town of Glyndon. Almost nothing is known about the family and childhood of this great man.

The only reliable fact is that the family did not belong to the rich class, since his father, being the main breadwinner of the family, worked as a paramedic in one of the surrounding villages.

It was the father who influenced his son’s further choice of profession. After graduating from high school, Thomas chose to study as a chemist, so he entered Swarthmore College and successfully graduated. After graduating from college, Price tried to work in his profession in a young company that was created by recent graduates of the University of Pristan. As Thomas himself recalls, the interview that was conducted with him was long, and the desire to work in the company was caused only by sympathy for the general director after the interview.

However, the company's managers were incompetent, so a month later a general staff strike was announced, after which a bankruptcy message appeared. Afterwards, Price repeatedly applied for a position as a chemist, but was either deceived or the pay was too low.

Broker's profession

As a student, Thomas Rowe Price paid great attention to the analysis of the goods and companies themselves, rather than to chemistry. After graduating from university and making his first unsuccessful attempts to work in his profession, Price realizes that chemistry is not his strong point. Instead, he had an excellent understanding of companies and was able to conduct detailed analysis of personnel and economic indicators of enterprises.

Therefore, instead of becoming a chemist, he gets a job at a stock brokerage company, where his responsibilities include writing analytical articles on securities.

Thomas Rowe Price was a very strong personality, so he immediately did not like the work scheme, in which the entire staff, to put it mildly, pushes shares on clients that were indicated from above. Instead, he argued with his superiors, and when talking to clients, he focused on the risks of a particular investment.

This approach to work could not but affect his salary, but his conscience was clear.
Price paid special attention to the shares of companies that were actively developing and creating an innovative product. At once

Price suggested to his management that they create an investment management division. John Legge was pleased to receive this news, so he gave the go-ahead for the creation of the unit and allowed him to recruit a staff of four people.

Creating your own fund

At one point, Price heard rumors that they had decided to disband his department, since the profitability from speculative purchase of shares was supposedly greater than from creation and maintenance portfolio investments. Therefore, after consulting with his family and work colleagues, he creates his own company, T. Rome Price Associates.

At first, in order to retain clients, Thomas Rowe Price spent days at work, and provided potential large investors with free asset management for three months in order to persuade them to stay with his company. There were also problems with two team members, Walter Kidd and Charles Schaeffer, who left their previous place of work and followed their mentor. To convince them to stay and continue to develop the company, Price gave them some shares.
 
In 1960, a second investment fund was created, which focused on buying shares of new companies, and after George Collins joined the company in 1971, a third fund was created, which focused on trading bonds.

After Price left, his first partner Schaeffer took over as CEO, followed by Collins. For 19 years after Price left the company, management was close to him, and only after his death in 1983 the company was radically reorganized. T. Rowe Price Associates continues to operate today, with assets under management of $800 billion.