Trader Thomas Rowe Price
Thomas Rowe Price is the founder of the financial giant T. Rowe Price Associates, which continues to operate successfully even after the death of its creator.
Thomas Rowe Price's company has generated and continues to generate income for millions of investors worldwide, and Price himself has become a role model for thousands of aspiring investors.
It is the life path of an unknown chemist who was able to create a large Hedge fund Without any specialized education, it simply cannot fail to amaze. This article will introduce you to the biography and success story of this remarkable man.
Thomas Rowe Price was born back in 1898 in Glyndon, Maryland. Almost nothing is known about this great man's family and childhood.
The only reliable fact is that the family did not belong to the wealthy class, since his father, being the main breadwinner of the family, worked as a paramedic in one of the surrounding villages.
It was his father who influenced his son's subsequent career choice. After graduating from high school, Thomas chose to study chemistry, so he enrolled at Swarthmore College and graduated with honors.
However, the company's managers were incompetent, so a general staff strike was declared a month later, followed by bankruptcy notices. Afterward, Price repeatedly applied for chemist positions, but was either deceived or the pay was too low.
Broker profession
As a student, Thomas Rowe Price focused more on analyzing products and companies themselves than on chemistry. After graduating and making his first unsuccessful attempts at working in the profession, Price realized chemistry wasn't his strong suit. Instead, he had an excellent understanding of companies and was adept at conducting detailed analyses of personnel and economic performance.
So instead of becoming a chemist, he takes a job at a stockbroker's company, where his responsibilities include writing analytical articles on securities.
Thomas Rowe Price had a very strong personality, so he immediately disliked the work system, where the entire staff, to put it mildly, pushed stocks prescribed by the top brass onto clients. Instead, he argued with management, and in conversations with clients, he emphasized the risks of each investment.
This approach to work could not help but affect his salary, but his conscience was clear.
Price paid particular attention to the stocks of companies that were actively developing and creating innovative products. At one point
Price proposed to his management the creation of an investment management division. John Legg welcomed the news, gave the go-ahead and authorized the creation of a four-person staff.
Creating your own fund
At one point, rumors reached Price that his department was to be disbanded because the profitability of speculative stock purchases was allegedly greater than that of creating and maintaining them portfolio investmentsTherefore, after consulting with his family and colleagues, he created his own company, T. Rome Price Associates.
Initially, to retain clients, Thomas Rowe Price worked day and night, offering potential major investors free asset management for three months to persuade them to stay with his firm. Issues also arose with two team members, Walter Kidd and Charles Schaeffer, who left their previous positions to follow their mentor. To persuade them to stay and continue developing the company, Price transferred some shares to them.
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 bond trading.
After Price's departure, his first partner, Schaeffer, became CEO, followed by Collins. For 19 years after Price's departure, management remained close to him, and only after his death in 1983 was the company radically reorganized. T. Rowe Price Associates remains in business today, with assets under management totaling $800 billion.
