Ronald Perelman: Bright Mind in Buying and Selling Companies

Ronald Perelman is an American entrepreneur and investor. With the help of his company MacAndrews & Forbes Holdings Inc., Perelman was able to acquire interests in various companies that encompass a wide range of industries such as banks, cars, camping supplies, cigars, comic book publishing, groceries, jewelries, licorice, makeup, photography, security and lottery. He is listed as the 26th wealthiest American and the world’s 69th wealthiest man. His fortunes are estimated at $14 billion.

Perelman was born on January 1, 1943 in Greensboro, North Carolina. As a boy, Perelman showed signs of business successes. Together with his father and brother, the Perelmans had complete control of the American Paper Products Corporation. His father taught him the fundamentals of business. At eleven, Perelman was a regular audience at the board meetings of his father’s companies.

In 1964, Perelman earned his degree in business at the Wharton School of the University of Pennsylvania. While he was a freshman at Wharton, Perelman had his first major business deal. At the advice of his father, Perelman acquired the interests of Esslinger Brewery for $800,000. It was reported that he sold the company for $1 million profit three years later. This became the business strategy of Perelman throughout his business career: acquire a company, sell off unprofitable segments to generate profits and reduce debts, operate the company’s core business, and sell it for cash flow.

In spite of his father’s influence, Perelman did not have a good relationship with him. In fact, their animosity began at Belmont Iron Works (now Belmont Industries) when he was just a boy. Perelman was the vice president for twelve years. Since his father did not intend to step down from the company, Perelman resigned in 1978 and moved to New York.

On his own, Perelman had his first business deal as an independent investor in 1978 after he acquired Cohen-Hatfield Jewelers. Perelman recognized that the company was mismanaged and purchased the company for $1.9 million. Perelman closed and sold all the retail stores and concentrated on wholesaling and earned the company $15 million.

Next, Perelman targeted MacAndrews & Forbes, a company his father failed to acquire ten years earlier. Although the licorice and chocolate company tried to prevent Perelman from acquiring the company through lawsuits, Perelman prevailed. As chairman and CEO, Perelman turned MacAndrews & Forbes into the holding company of many of his interests in diversified industries. Oftentimes, MacAndrews & Forbes would invest in companies with recognized brands, solid market positions and potential for growth.

Sir Cyril Arthur Pearson: Sustaining Publications Through Time

Sir Cyril Arthur Pearson, 1st Baronet was a British newspaper publisher who founded the Daily Express. Pearson was born on February 21, 1866 in Somerset. He attended the Winchester College in Hampshire. His first exposure as a journalist came through his first job at the magazine company of George Newnes, the TiT-Bits His stint at Tit-Bits was so impressive that Newnes promoted him as his principal assistant.

Six years later, Pearson left Tit-Bits to start his own publishing company in 1890. The first three weeks was a milestone for Pearson after Pearson’s Weekly, his periodical journal, sold 250,000 copies of its first issue. In 1892, Pearson established the Fresh Air Fund (known today as Pearson’s Holiday Fund) and allowed the less privileged children to participate in outdoor activities.

One of Pearson’s first expansions involved the acquisition of the Morning Herald in 1898 and merged it with Daily Express in 1900. Unlike other newspapers at that time, Daily Express featured news items on its front pages instead of advertisements only. Pearson also impacted the provinces with the creation of Birmingham Daily Gazette. In 1898, Pearson also created the monthly literary magazine The Royal Magazine.

The Rise of George Peabody

George Peabody was a British-American businessman and philanthropist. He was respected for his many charitable initiatives and for being instrumental in establishing the George Peabody Library and the Peabody Institute in Baltimore and the Peabody Trust in UK.

Peabody was born on February 18, 1795 in South Danvers, Massachusetts. He was born to a poor family and through his childhood, Peabody was deprived of many things. His childhood deprivations inspired his philanthropic activities later in his life. His birthplace is now known as the George Peabody House Museum and was used in interpreting his life, work and legacy.

After moving to Baltimore in 1816, Peabody would spend the next two decades here to establish his career. His office later became the rendezvous of the Second Continental Congress in 1977. He became a successful entrepreneur and financier. His devotion to art education and music led to the creation of the Peabody Institute.

Peabody first came to the UK in 1827 because of business but this was just the beginning of four other trans-Atlantic trips in the next ten years. He opened an office in Liverpool. In London, Peabody opened a bank and called it George Peabody & Company. He decided to permanently reside in London in 1837, and spent the rest of his life there.

During the peak of his financial success, Peabody made one of his many visits to the US in February 1867. One of the cronies of President Andrew Jackson, Francis P. Blair, floated the idea that Peabody can serve as Secretary of Treasury for the Jackson administration. Many newspapers also mentioned him as a possible presidential candidate. Later, Peabody described the idea of running for president as “kind and complimentary reference.” But at 72, he thought he was too old for both offices.

Peabody died on November 4, 1869 in London. He was 74. After his body was temporarily laid in Westminster Abbey, the largest ship of the British Royal Navy at that time, the HMS Monarch, brought his remains back to the US. His final resting place was at Harmony Grove Cemetery in Salem, Massachusetts.

Simón Patiño: King of Tin

Simón Iturri Patiño was an industrialist who was lined up with the wealthiest people in the world by the time of his death. Patiño was known as “The Andean Rockefeller” because he owned most of the companies in the tin industry in Bolivia.

Patiño’s fortunes began in Oruro, Bolivia where he managed a small grocery store. His biggest break came in 1894 when Patiño worked with Fricke y Compañia as collector. He was offered a deal to accept a deed for a compromised land for $250 that the prospector owed. Patiño found out later that he exchanged the account for a “worthless” piece of land in the rocky side of the mountain. According to legends, Patiño was fired.

The land turned out to be very rich in mineral deposits. In 1900, Patiño discovered a huge vein of tin. The next ten years gave Patiño the control over the more important mines in Bolivia. Through the 1920s, several nationalities showed interest in his tin company and bought tin smelters in Germany and England. By the 1940s, Patiño has controlled the world’s tin markets and was known as one of the richest men in the world. Patiño earned the reputation as “The Tin King.”

Dick Parsons: Influence to Both the Public and Private Sector

Richard “Dick” Parsons is an American businessman and executive. He served as the chairman of Citigroup. Once, he was concurrently the chairman and CEO of Time Warner. Currently, Parsons is the CEO of the NBA ball club Los Angeles Clippers.

Parsons was born on April 4, 1948 in Brooklyn, New York. His father was an electrical technician while his mother was a homemaker. He attended the University of Hawaii where he played in the basketball varsity team. He was not able to finish his bachelor’s degree after four years because he lacked seven credits. He enrolled in a law school in New York that admits pre-law undergraduates provided he makes a good score in the pre-law exams. The Albany Law School admitted Parsons and in 1971, he earned a Juris Doctor after he topped his class.

After law school, Parsons worked in the New York State Legislature as intern. During this time, Parsons was invited by New York Governor Nelson Rockefeller to work as lawyer for his staff. When Rockefeller became the US Vice President in 1974, Parsons followed him in Washington D.C. Parsons had the chance to work directly with then US President Gerald Ford.

Parsons returned to New York in 1977 to work as a partner at the law firm Patterson, Belknap, Webb & Tyler. One of the high-profile clients that Parsons handled was the Rockefeller’s widow, Happy. Dime Savings Bank of New York recruited Parsons to be its COO in 1988. He accepted the invitation and later became the chairman and CEO of the bank. Parsons gained a large sum of money after Dime was demutualized following its merger with Anchor Savings Bank.

In 1991, Parsons joined the board of Time Warner. He became Time Warner’s president in 1995. He was the negotiator of Time Warner’s merger with America Online which created a $165 billion media giant. Following the retirement of Time Warner CEO Gerald Levin, Parsons was selected to be his successor.

Parsons served as Citigroup’s chairman in February 2009.

How Walter Paepcke Popularized Skiing

Walter Paepcke was an American industrialist, business executive and philanthropist who rose to prominence in the mid-20th century. Paepcke served as the executive of Container Corporation of America at one point and was the founder of Aspen Institute and Aspen Skiing Company. He reshaped skiing and placed Aspen, Colorado on the map as the first choice of a destination for vacation and skiing in the US.

In 1949, Aspen became the venue for the celebration of Johann Wolfgang von Goethe’s 200th birthday anniversary through the efforts of Paepcke. A few celebrities were at the celebration. In 1950, Paepcke established what is known today as Aspen Institute. Thereafter, Paepcke promoted Aspen through posters and other design works created by Bauhaus renowned designer Herbert Bayer.

Through his wife, Elizabeth, the Paepckes also opened the Aspen Music Festival School where Walter Paepcke served as the director. He stepped down from the position in 1954 following his appointment of Mack Harrell as his replacement.

Being a wealthy man, Paepcke used his fortunes for the benefits of others, especially for educational foundations.